It's make-or-break time for the inverted head and shoulders pattern. After pushing to nearly 900, the ES has retraced to its neckline, and it is threatening to sink further, which would invalidate the pattern. (Take note of boldfaced horizontal blue line below)
My positions are so biased to the bear side that I'm OK with this, but frankly one last push deep into the "900s" territory would suit me fine too, since I could get shorts at better prices. The only big report out this morning is the Institute for Supply Management's manufacturing index, released half an hour into the open. That should help clarify direction for the day.
