ST trend: up
Yesterday we were noting that the trend was down, but with a potential bottoming attempt as FGSI was showing unconfirmed lows. Turns out the actual low was a few points away on yet another unconfirmed low on FGSI, then market bounced again very strongly from there. However, differently than in the other situations in the last 2 weeks, the bounce was stopped by ML which held as resistance.
The o/n came to the buyers' rescue and after a sideways action both up and down, there was yet another strong bounce which did manage to break back above ML. Now, as I have been repeating like a broken record - ML is key for the near term trend. Buyers winning back ML is a strong statement they are trying to get back in the lead. FGSI is showing an unconfirmed high at the o/n high and market pulled back from there to test ML once more. That triggered a pretty large bullish EE, so now this is where it gets decided. ML is the big inflection point going into today. If buyers manage to defend it and bounce, then the trend is back to up and we could be getting back to the usual up grind. Especially if they can turn the unconfirmed high on FGSI to a confirmed high. However, if price breaks back below ML then that would signal more bearishness ahead.