ST trend: up (with potential topping pattern)
Yesterday we were noting that the ST trend was down with potential bottoming attempt as FGSI continued to show unconfirmed low set-ups. We did mention that ML and macro-ML were the key levels for the trend and that proved once again true. Price continued lower, back-tested ML, rejected to new lows, then had a larger bounce off RTH open to test macro-ML, rejected there and pushed once more to new lows. Buyers managed to take control after that, as FGSI continued to refuse to confirm those lows and had a very impressive bounce to win back ML and macro-ML.
The o/n had a head-fake drop below macro-ML and ML, which was quickly bought to new highs. Then another ML back-test before it continued higher. Buyers were already making good progress and got and additional help from Russia as apparently "positive progress" in the talks with Ukraine is worth a 60+ point ramp. We are in an extended situation near term as both FGSI and IGSI are at extreme optimism, however danny continues to act as support for price and as long as that happens more immediate upside is possible. In order to keep the new found up trend intact, buyers would need to hold ML on any potential back-test.