mcm daily market update 6.Dec.22

Main trend: down

ST trend: down

The market put in a high near 4100 last week before pulling back from there. 200DMA is also there plus several technical resistances, including the "bear market TL" coming from ATH, so no wonder that triggered a reaction. The bad news for bulls is that the highs were unconfirmed on all GSIs and price broke below all MLs as well, confirming the change of trend.

Yesterday we saw a clear down trend day with every pop being sold, while the o/n continued in the same manner. Yesterday's LOD is an important lvl on the downside, as we have bullish EE on FGSI vs that low. On the bull side, they need to hold that low and attempt to breakout above 400bar MA (1st step), then to challenge ML.

From a larger picture perspective, the rejection at 4100 looks ominous for bulls, especially coupled with the GSIs showing those highs as unconfirmed. On top of this, the decline off that lvl looks nested, meaning a series of 1-2 waves. If the market continues to drip lower, the drop is likely to accelerate soon. The bulls have one chance here to stop the bleeding and stop the decline as a rare double 3 correction (WXY). The 4020-4040 area is the very important area which bulls need to win back asap. No coincidence that both ML and macro-ML are in that area.