Market Moves Lower and Tests Key Support
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Today, the market finally posted a local top and a meaningful pullback, with a decline of about 1.5% heading into the close. This move broke below the initial support level and is now approaching the key lower support zone that I’ve highlighted in recent days.
On the ES chart, today’s decline reached the upper end of this lower support near 5847. A further move down through the 5779–5778 level would be the first real signal that a larger degree top may be in place. Until that lower level is breached, we can’t confirm a broader trend reversal.
While I remain cautious, a break of that support is needed to shift the outlook more bearishly. Until then, the potential for another push to new highs remains. That said, the market continues to be stretched to the upside, and caution is warranted at these elevated levels.
