Unfinished Business To The Upside

Good Tuesday Morning, MPTraders!  January 23, 2024-- Pre-Market Update: Turnaround Tuesday potential? Thursday's First Estimate of Q4, 2023 GDP, and Friday's PCE Inflation Data are the focus of traders and investors from a macroeconomic perspective (The Fed remains "data-driven" right?), with a few very telling earnings reports sprinkled in along the way into the end of the week...

As for ES and SPY, neither looks ready just yet for a nosedive. In ES (see my attached chart), as long as any forthcoming weakness is contained above nearest support at 4873.25/50 initially, and above 4840 from a worst-case pullback perspective, my pattern work argues that the index has unfinished business to the upside that projects to 4920/25, which is the next optimal target zone from where the upmove from the post-1/05/24 low could "need" a breather... Last is 4888.00...

SPY (see my attached chart) has a similar setup as you might suspect. As long as any forthcoming weakness is contained above 482.20/50 initially, and above 480.00 in a worst-case pullback scenario, my larger pattern work argues for upside continuation into the 486-488 next immediate target zone, from where SPY could be "ripe" for a period of digestion-correction... last is 484.14

If today does become a Turnaround Tuesday, I will expect selling to emerge closer to 4920/25 in ES and closer to 486-488 in SPY... 

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