Markets At A Crossroads

Good Tuesday Morning, MPTraders!  October 10, 2023-- Pre-Market Update: Markets at crossroads this AM, overlaid by the fog of war...

If there is one Big Picture that expresses and exhibits the technical setup of the benchmark S&P, it is my attached Daily ES Chart that shows the recovery rally has recovered to and slammed into a sharply down-sloping 20 DMA (4383), which is located just beneath the "Neckline" Resistance Zone of a formidable June-October Head & Shoulders Top formation. 

The ensuing Bull vs. Bear battle in and around 4370 to 4400 will determine the direction of the next 50 to 70 ES points. 

My pattern bias argues for ES to roll over and head toward 4310/20 barring some bullish catalyst that triggers algo buy signals, such as a sudden (but obviously welcomed) succession of hostilities in the Israel-Hamas conflict. 

In the absence of much movement in either direction during today's AM session, my suspicion will be that traders and investors likely are "on hold" awaiting the next potentially meaningful data point in our data-dependent existence, the September PPI Report on Wednesday morning (8:30 AM ET)... Last is 4368.50...