Reversal Held — Now Comes the Real Test
by Tony Rago
Big reversal yesterday pushed NQ back above 29,250 and ES back through 7,412 after our first meaningful 2%+ pullback of this entire rally. That move was a perfect example of why we continue to respect the weekly pivot levels — NQ tagged the pivot, held cleanly, and reversed hard from there. Those areas matter because they often become inflection points where institutions defend trend or press for reversal. This morning though, PPI came in very hot pre-market, so we could be setting up for a much bumpier open as traders digest the inflation data and reassess risk.
The key area I’m watching on NQ is the halfway-back level of yesterday’s rally at 29,106. Bulls need to defend that zone if they want to maintain momentum and keep the reversal intact. Bears, on the other hand, finally have an opportunity if they can force acceptance back under 29,106 and ultimately reclaim 29,000. On ES, the focus is similar — bulls want to hold any pullback into 7,388 and reclaim 7,412, while bears need a break back under 7,377 to start gaining traction. This is the kind of session where patience matters. Let the open settle, let the levels react, and trade what confirms instead of anticipating the move.
👉 Full breakdown is inside today’s Pre-Market Playbook. Check it out here and trade it smart.
– Tony
