mcm daily market update 18.Nov.22
Main trend: up
ST trend: up
The market flushed yesterday in a pretty violent manner opening with a large 50+ points gap down, however bulls managed to defend the prior support area near 3900 and staged an impressive rally. The gap fill area provided some resistance for a late day drop, but bulls again managed to come back and in the last 30m almost got back to HOD.
The o/n continued what looked like a new found bullish leg as bulls easily took out the RTH HOD from yesterday, pulled back from there, but then made new highs. So for now bulls look like they are in control as they recovered ML and macro-ML easily. Those lines remain important and bulls will want to hold above in case of any pullback.
Big picture wise it looks like bulls have "one more wave" up looks like a 4th wave, with another push to recent highs near 4030 still needed to complete the move. It could, ofc, go higher, but once we have made a new high bulls will want to be careful as there would be enough waves in place for a complete move off 3700 and 3500. Given that we traveled more than 500 points, the coming same degree pullback is likely to be large.