ST trend: down
Yeterday (same every day since Tuesday, actually) we were noting that the ST trend was up and the market delivered. We had a BE Xtick right off the cash open, which was broken out, and there was no looking back after that. The FGSI nicely hinted we could get an up squeeze set-up and that played out text book. The market finally peaked in the 2nd part of the day, also text-book for the FGSI up squeeze set-up, only after FGSI turned back up to mark an unconfirmed high.
From the unconfirmed high, the market pulled back pretty strongly, bounced, but the bounce showed buyers were inefficient and after that sellers took control. They broke to new lows and ran price into a ML test. A pullback to ML would be the normal expectation after an up squeeze set up, however it is a bit concerning that ML did not hold cleanly. Buyers had a decently bullish set up going into the ML test. We had bullish EE on both FGSI and IGSI, FGSI was at extreme pessimism (green zone). So they should have held ML more cleanly. But they didn't and this looks more like a breakdown with rejections at the back-test attempts. FGSI is showing buyers are inefficient, so the ST trend is down for now. Price is still in the vicinity of ML, so not all is lost for buyers. They can still stick save this, but they need to win back ML. And whatever they do, they MUST defend the bullish EE lvl on FGSI (it is at the same lvl also on IGSI, so double importance). If that lvl goes, then that would be seriously concerning for the up trend.