ST trend: down
On Friday we were mentioning that the ST trend was neutral, as both sides were showing inefficiency via FGSI. The session on Friday didn't do much to clarify things and we had a sideways chop day, but which did finish near the lows. Sunday saw prolonged weakness as price made significant new lows and tested the 4350 ES area.
Buyers did stage a decent bounce off those lows (FGSI had reached extreme pessimism), but the bounce looks weak and was subsequently sold. We did get a ML back-test which rejected price strongly, so things look pretty grim for buyers. We are at extreme pessimism again on FGSI, if they can step in again, then danny would be the 1st line to watch. Above that 400bar MA and, of course, ML is THE key line in the sand. Only if buyers manage to win back ML will the bearish character change. Otherwise the sellers would have the edge.