ST trend: up
After the weakness into the close, mkt continued lower, but put in a very bullish situation at the o/n lows. Not only there was extreme pessimism on FGSI, but it was in the context of bullish excess energy (EE) vs the prior trip to extreme pessimism. Additionally it put in an unconfirmed low just after that. Not suprisingly that triggered a decent bounce. That did trigger bearish EE which initially held, but was afterwards bought to new highs and the bearish EE level was broken and turned into confirmed highs. That also has the potential to be very bullish. Sellers are also inefficient on this decline and a bullish EE is already set up vs the prior low. These are all bullish signs, so the ST trend is up. The only way bears would be able to reverse this into a more immediate correction would be to break that bullish EE level, however with the maginot line (ML) also being a few points above it, that looks unlikely.