Emini S&P 500 (ES) Vulnerable To Continued Weakness

Good Morning, Mptraders!  Thursday, January 19, 2023-- Pre-Market Update: Was yesterday's sharp downside reversal in the equity indices (that is continuing lower this AM) a watershed moment when stock market bulls realized that the stubborn Fed is intent on jamming a recession down the market's throat, no matter what the data and historic yield curve inversions tell them? Given the extent and pace of the unwind in price, we will find out in the hours directly ahead if the Fed has just initiated an avalanche of fear and selling pressure in the equity indices... 

ES continues lower by another 0.8%, extending yesterday's relentless 2.2% plunge as the index nears a full-fledged test of the 20 DMA, now at 3903, which represents the next lower EXTREMELY IMPORTANT SUPPORT ZONE (down to 3890) that preserves a larger-developing setup that still allows for another loop up into a run at 4100+ (see my attached Hourly Chart).

However, my BIG Picture setup shown on my attached Daily Chart warns me that a sustained breach of the 20 DMA greatly increases ES vulnerability to additional weakness that will challenge the dominant Oct-Jan. up trendline, now in the vicinity of 3865, in route to a rendevous with the late December low-zone (3810 to 3790) and the Lower BBnd, now at 3780. Last is 3912.75...