When we look at the chart of the Sigma Whole Market Index on a weekly basis, we can see we are breaking through resistance (previous top), and we are now ready to test the pink resistance.
Looking at the chart of the Sigma Whole Market Index on a daily basis, the situation is also very clear. We are breaking the double top and a new acceleration is possible. Nevertheless, recent advance looks like a 5 waves upleg. So, current upleg could already be finished.
For us, the main problem comes from the Sigma Smart Money Index which doesn't confirm the breakout.
Looking at major European Indexes, we can notice the situation is unchanged: the DAX is leading the way and is already very close to its all time highs. The CAC is much weaker, and the Eurotsoxx is stronger than the CAC but weaker than the DAX.
The Swing was at '4' on Friday, this tells us the session was impulsive:
The ST model computed new stop levels on all our positions:
Short Term Trading Book:
- SPX: long at 1787.18 (stop @ 1755, 3pts below the ST model to take into account bid/ask spread)
- NDX: long at 3475.53 (stop @ 3382, 5pts below the ST model to take into account bid/ask spread)
- CAC: long at 4115.38 (stop @ 4061, 5pts below the ST model to take into account bid/ask spread)
- DAX: long at 9164.04 (stop @ 8920, 10pts below the ST model to take into account bid/ask spread)
- EStoxx: long at 2974.13 (stop @ 2909, 5pts below the ST model to take into account bid/ask spread)
Medium Term Trading Book:
- No more medium term position at this stage.
Out of model position: (in case of a blow off rally like in 2000)
- 1 call NDX January 2014 strike 3700 @ 5.06
