Europe:
The Sigma Whole Europe Index had a wild session on Tuesday but it seems the 'abc' pattern is right on track. Friday rebound was 'a', Monday and Tuesday's pullback was 'b', and the rebound started on Tuesday is the beginning of 'c'.
If this pattern is the right one, we should (at least) reach Friday's summit by Wednesday or Thursday.
The Sigma Trend Index declined in negative territory and the Swing came in at '2'.
The ST model was stopped on all European positions except the IBEX.
The ST model is experiencing its worst year on 3 years. It is clear current market conditions don't fit with this model.
The intraday model seems much more accurate in current environment and we are more and more exposed to this model in our own book.
United States:
The Sigma Whole Market Index printed a nice candle (looks like a reversal day) and this is rather bullish.
Both the Mid Cap Index and the Russell 2000 successfully tested major supports.
The Sigma Trend Index declined to '-2' and both the Swing and the Power Level were neutral at '3'.
- SPX: long at 2107.53 (stop @ 2042, 3pts below the ST model to take into account bid/ask spread)
- NDX: long at 4236.28 (2014's close) (stop @ 4340, 5pts below the ST model to take into account bid/ask spread)
- CAC: stopped
- EuroStoxx50: stopped
- DAX: stopped
- IBEX: theoretical long at 11424.7 (stop @ 11186, 10pts below the ST model to take into account bid/ask spread)
