The Sigma Whole Europe Index started a pullback on Tuesday. It will be very important to move above the 3 horizontal resistances in early January or we will reinforce the bearish scenario on this market.
For sure, the ECB effect (on the 22nd of January) should boost the market but the Greek effect could weight on markets. So, all in all, it is difficult to have an opinion on the net imact.
It is clear that some key European indexes are struggling with major resistances and seem unable to move above those levels.
The Sigma Trend Index remains is testing its zero line and the Swing came in at '2' telling us the decline was slightly impulsive. It is very important that the STI remains above '0' in coming sessions. Europe is once again in a critical situation.
The Sigma Whole Market Index is in consolidation mode. It will be important to keep the red horizontal support.
Looking at some major indexes, we can notice the NDX lost most of its momentum and is now in a weak situation (relative to the SWM). This is not a major problem at this stage, but this is something to monitor.
It will be important to monitor if the Russell achieved a real breakout or if it was a bull trap.
The Sigma Trend Index declined from '15' to '6'. The Swing came in at '2', telling us the decline was slightly impulsive. There is no danger at this time, this could be a consolidation phase prior to another rally.
There is no change in our positions:
