The Sigma Whole Europe Index remains very strong and there is no sign of reversal at this stage. ECB's liquidity continues to fuel the market and it seems the blow off scenario could be on the agenda.
Looking at key EU indexes, the situation is the same across Europe:
The IBEX reached our stop level and we closed our short position: 10677.7 - 10823.5 = - 145.8 (loss)
The Sigma Trend Europe increased to '23' but it remains below the key '34' level.
The Sigma Whole Market Index remains strong, there is no sign of reversal at this stage but the market hasn't been able to move above the red horizontal resistance. So, a double top scenario remains possible.
There are important divergences among key US indexes: some are below resistances, other moved above their resistances while others are close to major supports. So, it is not so easy to draw a clear conclusion.
The Sigma Trend Index declined below the key '34' level in the last 2 sessions but the market hasn't been able to print a negative impulse => no 'sell' signal at this stage. If we didn't get a negative impulse on Thursday, the warning signal will be cancelled and the ST model won't generate any 'sell' signal as long as the STI moves again above the key '34' level.
Daily Trading Book:
