mcm daily market update 21.Dec.22
Main trend: down
ST trend: up
After 5 straight red days, and a whooping 300 points loss, SPX finally put in a green candle yesterday. Not only that, but bulls managed to bounce off unconfirmed GSIs on all time frames and won back ML.
The o/n saw a shy continuation of the bounce as bulls managed to hold ML on all back-tests and continued to put in higher highs. Now ML is under attack again, it is key that bulls continue to hold here.
In the big picture view, bulls managed yesterday to also get out of the crash channel which started from the lower high vs 4100. We saw non-stop violent selling inside that channel and bulls are finally out. They need today to be a continuation day to stick the breakout (both over ML and out of that crash channel). The next BIG resistance above is at macro-ML near 3890 ES and then at trend-ML near 3950. These lines align and converge on large technical levels so they are very important. On SPX side 3870-3900 area is going to be tough to overcome from the bull side. If they can 3950 is next... above that is starting to get iffy for the bear case. So keep an eye on that area as we will likely know if this is just a DCB or bulls have bigger intentions .