mcm daily market update 8.Nov.21

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.