ST trend: down (with potential ST bounce attempt)
Yesterday we were noting that the ST trend was neutral as both sides were inefficient via FGSI and ML was being whipsawed in both directions. We did mention that "ML is still a key level so if one side manages to sustain a move above/below ML, that would be important to consider". The market obliged. Once ML was lost on the downside, sellers never looked back. Price grinded lower the entire RTH session with only a feeble bounce attempt late morning, which was quickly exhausted and we closed at the lows.
The o/n proved once more that closing at the lows is a trap, especially during OPEX week. We bounced from the lows right into a ML test. ML capped price with ease and the market kept making lower highs, until it finally plunged on yet another Russia headline. The biggest problem for buyers is that this decline was so large that it took out yesterday's lows (which were unconfirmed on FGSI). So while FGSI is at extreme pessimism and could trigger a near term bounce, because the lows are confirmed now, more work is likely needed before finding a bottom. Bigger picture, sellers are in control until ML is won back in a sustained way. Today is OPEX, so expect whipsaws in both directions. Due to the large drop from yesterday, market makers might be incentivised to push this higher, just something to be aware of.
ST trend: neutral
Yesterday we were noting that the ST trend was up, as buyers had won back ML and despite FGSI reaching extreme optimism they kept pushing higher. The RTH session was less bullish than the o/n, as buyers were not able to continue to push, but it was a gap 'n camp with price consolidating sideways in a tight range. However buyers did manage to hold above ML, which was important.
The o/n today saw even more sideways action. Buyers did manage a new high on the European open, similar to yesterday, but that spike was sold and we are back where we were before it. Price also back-tested ML (which was dragged higher), so we have a key level near-by. As long as buyers can hold ML, we can see higher prices being attempted. If ML is lost, then a deeper consolidation would likely be in play with the 4420 lvl being 1st area to keep an eye on and the 4395-4400 area being the MUST hold for buyers.
ST trend: neutral
On Friday we were noting that the ST trend was down, with potential bottoming attempt, as we had an unconfirmed low on FGSI and buyers were attempting to bounce from that area. We mentioned danny and 400bar MA as being important near term, while ML test being the "real test". Buyers did manage to test macro-ML after breaking danny, but were quickly rejected there. However they managed to hold a higher low vs the unconfirmed low and then staged a very impressive rally to win back macro-ML and ML, before peaking in the same 4530-4540 area. The decline into the RTH close was vicious and broke back below ML.
Sunday's session didn't do much, price whipsawed around ML neither side being able to make the breakout/down stick. Today followed the same pattern, with price spending actually more time below ML than above. Nonetheless buyers are attempting to breakout again now. We have both bullish and bearish EE on FGSI, so those lvls are important to confirm the direction after price moves away from ML.
ST trend: down (with potential bottom attempt shaping up)
Yesterday we were noting that the ST trend was down, with a bounce attempt, as buyers had put in another unconfirmed low pattern and bounced off there, but putting in bearish EE. We mentioned that ML remains a key level and key it was, as it capped price on every bounce attempt and then mkt was sold to new lows. The market acted very weak yesterday and there wasn't even a gap fill attempt and it closed at the lows.
That close proved to be a bear trap at least for half of the o/n session. AMZN came out with decent earnings and given that it was sold brutally yesterday (was over -8% at some point), ES ramped almost 60 points on the news. However, the big problem for buyers is that ML contined to cap price action. We had an initial test right off the AMZN news and ML held. Then after catching their breath for a bit, buyers tried again, but failed at ML once again. After that there was no looking back and we dropped to take out yesterday's lows. Another unconfirmed low attempt, but after the 8:30 NFP numbers also this bounce failed and we just took out the o/n lows. Going fwd, things look pretty bearish. Yesterday's RTH action was clearly bearish. And the o/n retracing the entire ramp off AMZN news is also horrible for buyers. It remains to be seen where the market would find suppor. Danny and 400bar MA are important near term. And if buyers can find their footing then ML will be the real test.
ST Trend: neutral (potential ST bounce underway)
On Friday we were noting that the ST trend was down, with potential bottoming attempt, as price kept making lower lows after losing ML and despite hitting extreme pessimism on FGSI several times. We did mention that once danny gave way the bottoming attempt would be confirmed and indeed once danny failed to cap price, buyers pushed it all the way into a ML back-test. Initially ML held, but buyers managed to make a higher low on the pullback from there and then broken above ML convincingly. We did get another ML back-test (from above this time), right before the "famous" late Friday ramp.
The o/n action since Friday's RTH close was as text-book as possible. Pullback after hours on Friday, then another push to minor new highs on Sunday, highs which remained unconfirmed on FGSI. Then pullback from there and another test of the highs on Monday before finally giving up and having a pullback into a ML test. ML is the key line in the sand, as usual. Buyers want to hold ML and bounce this back to the highs area to have hopes at another push higher. FGSI hit extreme pessimism on this ML test, so they have a decent chance at that. On the other hand, sellers need to break below ML. Capping price either at danny (ideally for sellers) or at least 400bar MA is what sellers want to see. FGSI is already showing buyers are inefficient on this bounce off ML, which is not what they wanna see. If ML is lost, buyers would need to make a stand at macro ML or at the 1st bullish EE lvl (the low where the Friday late ramp started).
ST trend: down (with potential bottoming attempt)
Yesterday we were noting that the ST trend was up as sellers were inefficient via FGSI, buyers had won back ML and FGSI was refusing to move to extreme optimism. We mentioned " there is a lot of room on FGSI to push prices higher before it reaches extreme optimism and signals a ST pullback". The market obliged once more and price pushed all the way to 4420 before FGSI finally reached extreme optimism. Buyers lost control there and we had a very strong pullback which sliced through ML in a big warning that buyers are in trouble.
The o/n looks quite bearish so far. Price whipsawed ML for a while, but buyers again lost the battle and once it started coming lower, the action was as bearish as it can get. Each bounce was capped by danny and despite FGSI hitting extreme pessimism and even attempting to put in unconfirmed lows, the market kept making lower lows. Now we have a confirmed local low on FGSI after breaking several unconfirmed lows, so it would seem more work is needed before finding a meaningful bottom. Danny is the big line in the sand for the immediate term trend. As long as it continues to act as resistance, price can continue to make lower lows.
ST trend: up
Yesterday we were noting that the ST trend was up with potential pullback starting as FGSI was coming back from extreme optimism and was showing unconfirmed highs. We did get a few whipsaws, then a proper pullback into a ML back-test before continuing back higher. We also warned that due to FOMC large swings in both directions were likely while waiting for the decision. The market obliged. Additionally we mentioned that the announcement itself is likely to trigger a very large move, while the 1st move is usually fake. The market also obliged on both. We saw a spike 3min after the announcement, then the market waterfalled more than 100 points to reach 4300 again.
The o/n saw an early attempted bounce which tested ML from below and then the market sold off to new lows. The lower lows were unconfirmed by FGSI and that triggered another large bounce (typical action). Buyers got price back above ML and FGSI is showing that sellers are inefficient. So the trend seems to be back to up. Buyers need to hold price above ML to avoid any doubts. As long as that happens, there is a lot of room on FGSI to push prices higher before it reaches extreme optimism and signals a ST pullback.
ST trend: down
On Friday we were noting that the ST trend was down, as the market continued to act weak. We also warned that "Large bounces are possible, but are likely to be good selling opportunities, while attempting to buy dips is extra risky. Dust should settle after OPEX, so the timing window for a potential important low would be Monday or Tuesday". That proved to be the case, as the large bounce off the RTH open back-tested ML and was rejected there strongly. Market then fell almost 100 points from that ML test to close near the lows.
On Sunday, buyers managed to step in and push price a bit higher, but then hit a brick wall near 4425 and stopped. Today's o/n action pushed once again in that 4425 lvl and got rejected and proceeded to break Friday's low. We are now in the timing window we considered for a low - today or tomorrow. While it does no seem the low is in yet, another large drop today could reach capitulation on the buyer side and then see a strong bounce. FGSI shows a confirmed low on the last low, so that will likely be taken out before an important bottom is found. We also have FOMC this week and Powel speaking on Wednesday, after the FOMC announcement. That could be a potential catalyst for another trendy move. So for now the ST trend (as well as the main trend) is down. Play accordingly until the market shows us a change in that character.
ST trend: down
Yesterday we were noting that the ST trend was neutral as price was testing ML, so it was decision time. Breakout would get an up squeeze while rejection would lead to immediate downside. We did get the breakout and a large up squeeze right into macro-ML. However, as we warned yesterday "Ultimately, it seems likely that we have unfinished business on the downside". The market rejected hard at macro-ML and buyers did have a feeble attempt to defend ML, but failed and after that there was no looking back. The market lost a whooping 100 points after ML was lost.
The o/n continued the pattern of the last few days. Instead of seeing an acceleration and breakdown, it put in yet another attempted stick save. Price made a lower low, which was unconfirmed on both FGSI and IGSI and the cue to start an attempted bounce. This one, although looking similar to the one from yesterday, didn't make it to test ML yet, so from that perspective looks weaker. Today is OPEX so there was always the prerequisites to have many shennanigans, but with VIX so elevated and markets in a very fragile state after these aggressive declines, whipsaws both ways are expected to be larger than normal. So reducing size and being extra nimble is required if wanting to actively trade. Same as yesterday, it doesn't seem like the market found a stable low just yet, despite the large decline. So the main trend is still down. Large bounces are possible, but are likely to be good selling opportunities, while attempting to buy dips is extra risky. Dust should settle after OPEX, so the timing window for a potential important low would be Monday or Tuesday.
ST Trend: down (with bounce attempt ongoing)
Friday saw large whipsaws in both directions. After a decently large gap down (30+ points), buyers stepped in and managed to fill the gap. Then the opening low was tested and finally broken, after which the last 2h of the session saw the "usual" late Friday ramp to take out the highs.
The o/n today saw a big "rug pull", as buyers are seeing a 60+ point drop from Friday's highs. That area was tested several times, but macro-ML capped price and finally once buyers lost ML, we had a large flush to take out Friday's lows. Buyers are attempting to reduce the large gap and with FGSI and IGSI at extreme pessimism that was to be expected. So bounce is ongoin ghere, however as long as ML is overhead, sellers have the upper hand. The o/n low is confirmed on IGSI and locally on FGSI, while FGSI is slightly unconfirmed vs the low from yesterday's late futures session. So even if a bounce is likely here, sellers are still preferred, until buyers can prove themselves by gaining efficiency on FGSI and winning back ML.
ST Trend: down (with potential bottoming attempt)
On Friday we were mentioning that the ST trend was neutral, as both sides were inefficient via FGSI. We did note that as long as ML and macro-ML are above price, sellers retain an edge and that proved to be true. The bullish EE on FGSI with FGSI at extreme pessimism did lead to a bounce right into a ML test, but ML held as resistance and after whipsawing a few times, marrket then made new lows. We did get the usual Friday afternoon ramp, but that also failed just below ML.
Sunday saw new lows reached, before another bounce into ML. And the o/n today also saw 2 ML tests, but both rejected price strongly. Now the market appears to try to find another bottom. FGSI is at extreme pessimism again, but the main problem for buyers is that this is a confirmed low. So even if we get a ST bounce, more work is likely needed before a more meaningful bottom is found. In the bigger picture, ML keeps rejecting price and acting as a brick wall of resistance, which is in itself bearish. Buyers would need to break above ML to start looking at a more significant change in trend. Until then, sellers have the ball.
ST trend: up (with pullback in progress)
First off: Happy New Year! Welcome to 2022!
On Friday we were mentioning that the ST trend was down, with potential bottoming attempt. The market had finally broken the 4770 support and fell to macro-ML quickly after that (as warned it would happen if ML and 4770 would give way). Price was just retesting 4770 and our expectation was that it could be just a reflective bounce. The market proved our expectations correct as it failed on the 1st back-test of ML and that important area and fell into another macro-ML test. Then another bounce, a spike above ML to 4780, then again failure and sell-off to macro-ML. Basically the entire Friday session was a chop between 4780 and macro-ML. Buyers held macro-ML, so that at least gives them some hope of holding the up trend.
The New Year brought some support for buyers as we gapped up on Sunday above ML and buyers were able to hold it on the back-test. Then they made another high above 4780, although they stopped 10 points higher. Now we are seeing a pullback from extreme optimism on FGSI into yet another ML back-test. The fact that buyers held macro-ML and won back ML, gives them hope that they just might stick save the up trend and resume the move higher. They are definitely not out of the woods just yet, so they need to keep holding these important levels and push higher to avoid a longer (and deeper) consolidation. They have not shown too much efficiency on FGSI or IGSI, so there are still some issues. Nevertheless, as long as ML and macro-ML are below price, buyers have the edge, so that needs to be respected until those levels fail.
ST trend: down (with potential bottoming attempt)
Yesterday we were noting that the trend was up with potential topping pattern as the high was unconfirmed on FGSI. We did mention the big picture ranges of 4770 and 4800. The market first had yet another bounce off ML which stopped again on the 4800 resistance and then sellers finally took over and we saw a big sell-off in the 2nd part of the RTH session and closed at the lows right into 4770 lower part of the range.
The o/n saw sellers finally break the 4770 area with a quick 20 point drop right into macro-ML. That test of macro-ML was unconfirmed on FGSI and buyers stepped in and brought price right back up to 4770. They are not very efficient via FGSI, as they are testing that big level from below, so this bounce could be just a reflexive back-test of prior broken support. Buyers would need to see a break back above 4770 and ML (which is just above) in order to get back in the lead. Either directly from here or after making a higher low vs the o/n low. Sellers have the upper hand now and they need to hold here and break the unconfirmed low.
And as today is the last day (and trading day) of the year, Happy New Year!
ST trend: up (with potential pullback coming)
On Thursday we were mentioning that the ST trend was up, as after Wednesday's big run the o/n saw just sideways chop, but buyers still managed to muster higher highs. The market delivered as it had a run up just after RTH open and then camp in a tight range, before pulling back into the close.
The o/n today looks very similar to Wed-Thu o/n from last week. Sideways chop in a tight range, but with buyers pushing from time to time and achieving higher highs. FGSI is at extreme optimism, so a ST pullback is possible to "reset" FGSI. As usual, if the danny line is broken, next support would be 400bar MA. IF 400bar MA also fails to hold price, then another ML back-test is possible. If either of those upper lines holds, then more immediate upside is possible. We are close to the prior ATHs, so if 4730-4740 area is broken through, then we could see another squeeze higher before a consolidation.
ST trend: down
On Friday we were noting that the ST trend was down as buyers had lost ML and macro-ML and were very inefficient on bounces via FGSI. That played out as expected as price continued lower about 40 more points from our post, before buyers finally attempted a bigger bounce from another trip to extreme pessimism on FGSI. That bounce perfectly back-tested ML and price rejected there. Buyers attempted again, after holding a higher low, but ML rejected price again and closed the session on Friday pretty ominous for buyers.
Sunday and today's o/n sessions continued the bearish set-up from Friday. Buyers were very inefficient on bounces (via FGSI) and price kept making lower lows. Given the strong rejection at ML, the main trend is down, until that changes. We are on the Monday after OPEX, so the market might attempt a larger bottom here. The 1st step for buyers would be to defend the o/n low and if they can't at least the low near 4500 reached beggining of December.
ST trend: down
Yesterday we were noting that the trend was up as buyers continued to build on the big FOMC bounce and sellers kept being inefficient on the tiny dips. This continued until ES made a new ATH, after which price finally starting to come down from nose-bleed highs. The normal expectation would have been for a pullback into a ML back-test to resolve the ST overbought situation. However that is not what the market had in mind. ML failed to hold and the initial bounce off it quickly failed. That was a major warning something is wrong (with the bullish scenario).
The o/n session continued the bearish character, as bounces were weak and buyers were very inefficient via FGSI. Additionally every trip to extreme pessimism on FGSI provided only very limited relief bounces and were then subsequently broken. So now we are back to a down trend. Buyers need to prove themselves now by breaking bearish EE levels and winning back those 2 important lines. Immediate term danny and 400bar MA have been capping price and if they finally fail to do that, it would be the 1st sign buyers are attempting to step in. OPEX is today, so whipsaws are possible in both direction, but the main trend is down until ML and macro-ML are won back.
ST trend: up
Yesterday we were noting that the ST trend is neutral as both sides were inefficient. We also mentioned that the prior day low was a big line in the sand and being a FOMC day, the market should pick up a more sustained direction after the announcement. Wednesday's low held the whole day and as it turned out was a great level to act against for those who wanted to enter long positions. The FOMC action was typical. First move (down) was the fake one and then the market rallied off that base to breakout significantly and close near the highs.
The o/n confirmed the shift (back) to full-on bullish mode. The RTH close was bested by another 30 points and ES came close to a new ATH. Pullbacks continue to be very small, while FGSI is showing sellers are having a very hard time getting price to cooperate. Brief drops of price below the danny line were quickly recovered, so until that line fails on a sustained basis, dips are likely to be contained. Once danny gives way and also 400bar MA is lost, then a pullback to ML could happen. That might not occur today and considering that ML is also being dragged higher by price, it could occur at higher prices. For now the buyers are back in the lead and the main trend is up. So dips are buying opportunities until the market signals again a change in character.
ST trend: neutral
On Friday we were mentioning that the ST trend was up with a potential topping pattern, as buyers had managed to win ML back, but FGSI was at extreme optimism so a pullback was expected. We did note that if buyers could hold ML on that potential pullback, that could set up another push higher, and that is exactly what played out. We got the pullback into a ML test, then buyers launched higher in a vertical ramp off the 8:30am data release. That pushed FGSI back to extreme optimism and the pullback from there tested ML once more, bounced, but the bounce failed and price dropped into a test of macro-ML. Buyers stepped in there, won back ML and held it twice before launching higher. All in all a good day for buyers, which held the up trend intact.
Sunday saw another push higher from Friday's close at the highs and then the usual grind back lower from there. What is worrying for buyers is that they started to show inefficiency via FGSI. So even if the larger trend is up (as ML was won and defended), the ST trend seems to be up for grabs as boths sides are inefficient. We also had an unconfirmed high on FGSI at Sunday's high, so if sellers break the bullish EE lvls and manage to break below ML, then we might see another test of the macro-ML. Buyers on the other hand would need to break Sunday's high to keep running.
ST trend: up (with potential topping pattern)
Yesterday we were mentioning the ST trend was down with a potential bottoming pattern as buyers were inefficient via FGSI and they had lost ML. However FGSI was at extreme pessimism, so a bounce was likely. The market did what we expected as it did bounce, but that bounce failed and in the end it resumed lower to make new lows. RTH closed at the lows, which we mentioned in our chatroom that is likely a bear trap.
The o/n proved the bear trap to be true. Buyers managed to hold yesterday's low, despite testing it 2 times, after which they launched higher. More importantly, they won ML back. That is a serious warning for sellers. If ML managed to hold, then the up trend will resume. FGSI is at extreme optimism up here, so a pullback is expected. If buyers manage to hold ML on that pullback, that would be the ideal bullish scenario. Sellers want to see ML fail on a sustained basis to arrest the bounce and attempt more downside.
ST trend: neutral
On Friday we were noting that the ST trend was neutral as both sides were inefficient via FGSI, having both bullish and bearish EE set up. The market did the same thing as the day before, namely rallied initiailly and broke the bearish EE lvl, until FGSI hit the extreme optimism zone. Then broke back lower to new lows. Buyers then stepped in from an unconfirmed low on FGSI and we got the usual late Friday ramp to repair the weekly close (as much as it could be repaired anyway).
Sunday saw a continuation of the boucne off Friday's lows and after reaching a "high plateau" a slow chop grind. The o/n today saw a push higher until FGSI reached extreme optimism, then the usual drop from there right into FGSI extreme pessimism. Buyers stepped in, of course, and now we are in a bit of "no-man's land". A few things are worth mentioning. FGSI kep showing sellers were inefficient on Sunday and even today on this larger drop. Buyers however also appear to be inefficient, having bearish EE vs Friday's high. Price is now close to ML, so a push higher would need to be taken seriously by the sellers, as it would indicate an attempted breakout. As can be seen on the FGSI chart the macro ML (thicker line above) was tested on Friday and even spiked above, only to reject price hard there. So price reaction to those important lines in the sand (ML and macro ML) will be important. The them the past 2 weeks has been o/n rally which spills into the RTH open, only to have the market drop hard from that high. It remains to be seen if this happens also now, while sustained breakout over 4600 is likely to be problematic for sellers.
ST trend: neutral
Yesterday we were noting that the ST trend was neutral, as both sides were inefficient via FGSI and set up both bullish and bearish EE. And we noted that breakout/down of those levels would be telling. The market initially broke down the bullish EE, which led to a decline that tested Wednesday's lows. That test coincided with an unconfirmed low set up on FGSI and buyers managed to step in there are arrest the decline. They tested ML, which rejected the 1st time, but then managed to hold yet another higher low and won ML back the 2nd time around and managed to hold above until the close.
The o/n saw price coming back to test ML once more. We even broke below it, but buyers managed to step in and stick save it close by and then won it back. ML got tested once more and this time buyers managed to make a higher low. Sellers are inefficient on FGSI and the 2nd decline to ML triggered a bullish EE lvl. The problem is that also buyers look inefficient on FGSI, so the trens is neutral. ML is the big line in the sand for the trend. Buyers need to keep holding above it to have hopes at more upside.
ST trend: neutral
On Friday we were noting that the ST trend was down, with a potential bottoming attempt. The market obliged and buyers made a decent effort going into the RTH open, but failed to take out the important bearish EE level on FGSI just below 4660. That failure was pretty ugly and led to another 50+ points drop until the close.
Sunday saw a big bounce off that close at the lows as the news driven scare from Friday aleviated somewhat and the market got right back to Friday's bounce high (near 4640). Buyers couldn't push through and today we retested that area twice and rejected every time. What is more problematic is the fact that buyers have exhibited continued inefficiency on the bounces into that area, last bounce making a lower high in price, but a higher high in FGSI, hitting extreme optimism zone. Sellers are also inefficient on dips, which makes the near term trend neutral. When a bigger trend change happens it is normal to see initial indecision on FGSI with both sides being inefficient, so this could still be part of the bottoming process. For that to happen buyers would need to break through 4640 area soon (ML is also in its vicinity now) and then 4660. If they can take out those 2 levels, Friday's low would start to look like an important bottom. On the other side, sellers need to hold 4640 (ideally) and break Friday's low. That was unconfirmed on both FGSI and IGSI, so it is VERY important.
ST trend: down (with potential bottoming attempt)
On Wednesday we were mentioning that the ST trend was neutral as both sides were inefficient via FGSI and set up both bullish and bearish EE. Those levels were mentioned as important for breakout/down. The market dropped on the RTH to test the bullish EE level and held it narrowly, proceeding afterwards into a big bounce that took out the bearish EE level. They definitely won the battle when they held the bearish EE level.
Yesterday saw buyer euphoria continue as the market ramped another 20 points above Wednesday's high. It then started dripping lower very slowly before it picked up speed and outright crashed. From top to bottom we travelled more than 120 points. We do have now a potential bottoming zone. For the 1st time since this big decline started buyers have been building higher lows, despite bearish EE showing up on FGSI. And they have also started to whipsaw danny, which has kept a lid on bounces since near 4700. Buyers are not out of the woods yet, as they have been unable to hold above danny, while FGSI still has bearish EE vs a level that is almost 40 points higher. Nevertheless the fact that danny is no longer capping price is a 1st warning buyers are attempting to bounce back. If they can win back also 400bar MA, then that would be additional confirmation of a bigger low in the works. Buyers need to start holding danny as support in order to avoid a potential run to a lower low.
ST Trend: neutral (potential reversal of uptrend underway)
On Friday we were noting that the ST trend was down, as price had reversed lower off an unconfirmed high on both FGSI and IGSI and broke below ML. We did mention that FGSI hit extreme pessimism and bounced into a ML back-test that rejected price. Buyers then defended the initial low and managed to win back ML and stage an impressive rally in the 1st part of the RTH session. The usual OPEX whipsaws then started to kick in and we dropped very quickly into a retest of the o/n lows, before buyers stepped in to defend that level.
Sunday and today's morning session saw a continued up grind putting some decent distance to Friday's afternoon low. However price stopped again near Friday's RTH high and reversed strongly. FGSI hit extreme optimism there too. Now price is testing ML in earnest and also broke the 1st bullish EE lvl on FGSI. These are worrying developments for buyers because if ML is lost, the edge will go to the sellers. They need to step in quickly to avoid a potential break of Friday's lows.
ST trend: down
Yesterday we were noting that the ST trend was neutral as both sides were inefficient via FGSI. Sellers took the lead early after the RTH session started and accelerated lower to break the bullish EE level. The market found support at extreme pessimism on FGSI and helped by a Seller Exhaustion and buyers were able to stage a V-shaped bottom from there to finish back near the highs.
The o/n saw a continuation of the bounce as buyers pushed the price almost ~20 points higher. That high was stubbornly unconfirmed by both FGSI and IGSI and once price failed to hold danny and 400bar MA we started the rollercoaster down again. Buyers also lost ML, which is particularly bad. We did hit extreme pessimism on FGSI again and buyers staged a bounce into a ML back-test, which rejected price. It is OPEX today so wild whipsaws in both directions are to be expected. ML remains important for the trend, so where price settles in relation to it will be telling.
ST trend: up
On Friday we were noting that the ST trend was neutral, as price was stuck in a range and both sides were showing inefficiency on FGSI. We had both bullish and bearish EE at the ends of the chop range, and mentioned that breakout would be telling. ML was also close by and that also provided nice clues. Price chopped around in the range for a bit more and off the cash opened dipped below ML slightly. However buyers were able to stop very close and once they broke back above ML there was no looking back.
Buyers continued to dominate on Sunday, making new highs above Friday. Today we had the usual pullback from the Sunday high, but buyers stepped in quickly to buy the dip and we made another high vs that one. So buyers are in control, as sellers continue to look inefficient on pullbacks. We do have IGSI stubbornly refusing to confirm the highs and FGSI setting up another locally unconfirmed high, so there is the potential for a reversal. The important TT lines (danny, 400bar MA and ML) must give way though. So far danny held support, which limited pullbacks. Once danny finally gives way, 400bar MA is the next inflection. A ML back-test could happen if 400bar MA also fails and if it does, that would be the big decision point. As long as price is above ML - buyers have the edge and this can continue to push higher.
ST trend: neutral
Yesterday we were noting that the ST trend was up, as sellers continued to be inefficient on pullbacks, while buyers had managed to win back ML. We did mention that ML is the key for the trend and that proved to be important. ML was lost early after the cash session started, which was a warning buyers are losing control. Sellers were not able to take advantage of that though and we spent the rest of the day in a sideways chop.
The o/n didn't bring much change. Both sides are inefficient (via FGSI) and we continue to chop sideways, just like in yesterday's cash session. ML is still overhead and rejected price several times - again, just like yesterday. ML continues to be the key level and if buyers manage to win it back, that breakout would be significant. The breakout must be sustained, a head-fake above ML which fades back below would actually be very bearish. So keep an eye on ML and how price acts around it. Given the sideways chop yesterday, today should bring a bigger move. ML should tell us if it will be up or down.
ST Trend: up
On Friday we were noting that the ST trend was (still) up, as sellers were very inefficient on FGSI. We also mentioned that the important lines on TTs would provide important clues when a reversal would finally show up. The market ended up pushing another ~30 points higher from our post, before finally reaching exhaustion and pulling back for the rest of the session. Once danny was broken on TTs, it was a clear sign a pullback is coming. The pullback was also 30+ points, after which the buyers managed to bounce into the close.
The action on Sunday and today in the am doesn't look very promising for buyers. Despite the news of the infrastructure bill passing over the w/e, price continued to consolidate in a limited range. It tested ML and bounced, but not convincingly and is still below the bounce high from Friday. Buyers also printed a bearish EE vs that high which held. On the other hand, sellers continue to show inefficiency on FGSI so considering that ML did hold, buyers still get the benefit of the doubt. If the bearish EE gets broken, that would be confirmation of more upside. If it continues to hold and we break below ML, that would be a sign a bigger pullback is in the cards.
ST trend: up
On Friday we were mentioning that the ST trend was neutral as despite earnings misses from 2 heavyweights (AMZN and AAPL), the decline was contained. Price just came to test ML and sellers were unable to push too much below it. FGSI was showing both bullish and bearish EE in a sign that the ST trend was up for grabs. We did note that a breakout/down of that EE would signal that one side is taking control and that side was the buyers. As soon as 4575 broke, buyers pushed strongly and finished at the highs (new ATHs).
Sunday saw a continuation of the up move, with new highs being reached. We had an unconfirmed high on FGSI and pullback from there. That pullback was bought today and we are currently at new highs and ATHs again. FGSI is showing the "up squeeze" set up, as it's declining fast off extreme optimism, while the danny line is holding as support and price keeps making higher highs.
So the ST trend remains up, despite the ST overbought condition. The 1st signs that it will let up will be a failure of danny to hold price. Next support below that is 400bar MA and below that ML. We do have FOMC starting its 2 days meeting tomorrow and announcing its decision on Wednesday, so that will definitely be an inflection point timing wise.
ST trend: neutral
On Friday we were mentioning that the ST trend was still up as sellers continued to be inefficient on eachpullback, while buyers kept pushing to higher highs. After the cash market opened we saw an initial drop, then a push to a new high, which was unconfirmed on FGSI and which was afterwards quickly reversed. The ensuing decline was very steep as we dropped 35 points in a vertical drop, before buyers stepped back in on extreme pessimism on FGSI and a 2nd sequential SE on TTs which also had an Xtick. That nailed the low for Friday and the market bounced right into the cash close.
Sunday saw a drop from those highs until FGSI hit again extreme pessimism zone (just barely), where buyers stepped in again and pushed price back right to the closing highs from Friday. The o/n today showed clearly that sellers are very inefficient (via FGSI) as every drop generated a big move in FGSI and as a consequence was quickly bought back up. It seems that the market is waiting for the cash session to decide on a clear direction. Above the ATH touched early on Friday and buyers could push another 15-20 points before finding resistance. As long as the ATH holds as resistance, sellers have a shot at pushing directly towards Friday's lows. Both TTs and FGSI currently give the upper hand to the buyers as all important lines on TTs (danny, 400bar MA and ML) are below price, while FGSI keeps showing sellers are very inefficient. So unless sellers step in on the cash open, we could see another push higher.