Breakout — Now Comes the Test
by Tony Rago
Bulls finally showed up and ripped price back above the major resistance that’s been capping us for the last couple of weeks. That’s a meaningful shift — when a level holds that long, it builds inventory and trapped positioning, so reclaiming it often forces a repricing. Now the question is whether they can defend it. After a breakout, it’s common to see the tape go a bit rangebound as it digests the move and works off stretched momentum. Key levels to watch on any pullback are 6950 on ES and 25,250 on NQ — those are the areas bulls need to hold to prove this isn’t just a squeeze, but acceptance above resistance.
On the earnings front, NVDA reported last night and is only up about $1.50, still under $200. That’s a muted reaction for a name that often drives sentiment, so how the tape responds at the open will matter. Does it get bought aggressively, or does the market shrug it off? Patience is key here 💪 The first hour has been extremely volatile lately — if it’s too fast, sit it out. There’s been plenty of opportunity after the opening rotation settles. Let the levels come to you, let the breakout prove itself, and then get after it with structure.
👉 Full breakdown is inside today’s Pre-Market Playbook. Check it out here and trade it smart.
