mcm daily market update 08.Aug.22

ST trend: up

On Friday the market gapped down big after the job numbers, however the bulls showed that they are still in control of the trend as they stepped in and filled the gap entirely, before chopping in that range for the rest of the session.

Sunday saw a small pullback, which was bought and now bulls are back at it again, challenging last week’s highs. The GSIs are showing that things are quite stretched up here, with both FGSI and IGSI hitting extreme optimism. Now FGSI is showing that this latest push as an unconfirmed high. So it is up to the bulls to keep going and turn it into a confirmed one. If they can’t and the market turns, then this could turn into a larger correction.

What is more important for the bulls is that they won back ML after it was lost on Friday. It also changed color back to green. So for now the trend is (back) to up, but the next time ML is lost it is likely to signal a change in trend longer than 1 day.