Futures sold off in the overnight session, but the real dump came after GDP came in negative, suggesting that we may already be in a recession.

ES1!5516.5 daily chart shows that the index reversed from the broken neckline.

ES 4h chart reveals that the index has been churning between 5500-5600 in a slow, choppy uptrend over the last four sessions. Yesterday, ES tested 5595 on some tariff related noise, but during the test, we observed massive selling under the surface, evidenced by an extreme negative divergence between NYSE ticks and ES.

We're opening with a large gap, and with several pending market events coming up later this week, my guess is that the downside may still be limited from here. However, as always, stay alert. There are so many retail traders who got sucked into this market over the last few sessions based on questionable technical narratives. This crowd could collectively dump their positions in the morning session, triggering a sharp spike downward.