ST trend: down (with potential bottoming attempt)
Yesterday we were noting that the ST trend was up, as buyers stepped up and held a bullish EE set up on FGSI and broke a bearish EE one. We did get a bigger head-fake drop after the cash market open, which broke below ML, but that break was again bought right back up. Price broke a BE which triggered right below ML and danny, so once that triple resistance couldn't contain the bounce it was clear that buyers had regained control. Market proceeded then to make new ATHs after that.
The o/n today brings a nasty surprise for buyers. The new ATHs were sold strongly. The market dripped initially back towards another ML test and FGSI showed big bullish EE vs yesterday's low. However what happened next on FGSI was key. Buyers were very inefficient on the bounce off ML and FGSI moved back above the center line with almost no price movement. That was the key signal that something is wrong with the up trend and once ML was broken down there was no looking back. Danny capped price action the whole way down and even if FGSI bottomed in the extreme pessimism zone the market continued to move lower. Right now we do have extreme pessimism on IGSI and FGSI, with FGSI showing an unconfirmed low. So that puts a potential bottoming attempt on the table. However as long as danny (and momentum line) keep capping price action, the market can continue to make new lows. Danny is key in the ST for an attempted bounce.