Buyers Face a Test
by Tony Rago
Overnight weakness is holding for now, and that puts the spotlight squarely on the bulls heading into the open. After such a strong run higher, it’s not unusual to see the market finally start testing buyers’ conviction. The key area today is yesterday’s lows — bulls need to defend those levels if they want to keep the broader uptrend intact and avoid opening the door to a deeper retracement. So far, ES has been leading the weakness while NQ continues doing most of the heavy lifting. That divergence is worth watching because when leadership starts to narrow, it can sometimes be an early clue that momentum is shifting beneath the surface.
The big question is whether this is simply another routine pullback that gets bought, or the beginning of something larger. We’ve seen buyers step in repeatedly throughout this rally, but eventually every trend faces a meaningful test. That’s why I’m not interested in predicting the outcome. As always, the opening range should provide the first real clues. If buyers reclaim control quickly, the trend remains the trend. If sellers gain acceptance below key levels, we may finally see some deeper downside rotation develop. Stay patient, stay objective, and let price lead the decision-making.
👉 Full breakdown is inside today’s Pre-Market Playbook. Check it out here and trade it smart.
– Tony
