Short Inventory — Bears Have the Edge
by Tony Rago
Inventory is short coming into the open, and the NVDA issues are still weighing on the tape. Bulls have had a couple of good days, so the big question now is whether they come out swinging again or if yesterday’s rally was simply a reload for lower prices. They certainly have their work cut out for them. Bears come in with a slight advantage, especially with the market opening near the expected move low — an important area to watch because it can help frame how much room price has left before reaching the market’s projected range. For the bulls, NQ needs to hold 28,000 and reclaim 28,250, while ES needs to defend 7,562 and get back above 7,600 quickly. For the bears, the job is to keep NQ rallies capped below 28,250/28,333 and continue selling ES rallies under 7,626.
This is a day to stay sharp and avoid getting caught leaning too heavily in either direction. Short inventory gives buyers something to work with if they can start forcing a squeeze, but they need to prove it by reclaiming those key levels. If rallies continue to fail, sellers may look to press the advantage. Watch how price behaves around the expected move low and let the opening action confirm who’s taking control. No need to force anything in a market with this much uncertainty. Be careful out there!
👉 Full breakdown is inside today’s Pre-Market Playbook.
Check it out here and trade it smart.
Until next time,
Tony
