After a weak start, the market seems to resume its uptrend.

We fear that any reversal from here could be a "double top".

In this context, we uplift our stop order, in order to secure a positive outcome for our trade.

Current position: long @ 1307.77

We have just created a twitter account in order to tell you what we are doing (in real time).

@SigmaTradingOsc

Thanks for this idea Scott.

Feedback and comments are always welcome.

Have a nice evening,

SigmaTradingOscillator

On Saturday, we posted two different scenario that could be under development.

It looks like the first one is currently under development. Here is the chart we posted on Saturday:

With this scenario in mind, we decided to cut our long position just after the European Market open at 1342.69.Then, we introduced a buy order at 1308 in order to take benefit of the expected pullback.

Our order was filled at the end of US session at 1307.77

Looking at our indicators, we can notice that the Sigma Trend Index (STI) fall back to '-2'. It is in line with a pullback scenario, but it must move (quickly) above the zero line.

Conclusion:

We don't have new information coming from our indicators, but it looks like our scenario is under development. We believe the 1350 - 1360 area is achievable in coming days (on the SPX):

Current position: long @ 1307.77 (stop loss @ 1285)

Have a nice day,

SigmaTradingOscillator

It looks like the scenario 1 (see Saturday's post) is under development.

=> We are waiting for 1308 in order to open a long position

Current position: no position

We opened 2/3rd of a long position at 1308.02 and we introduced an order at 1301 for the last third. Why?

We are pretty comfortable that the market should retest de 1335 - 1360 area in coming days (or weeks), but we are not convinced that the pullback is already over.

So, we will increase our position if the market retest the 1290 - 1305 area.

Looking at our indicators, we can notice that they are (all) in positive territory:

- The Sigma Trend Index moved from '-1' to '2', telling us the downtrend is over (at least for the short term) and that we should have more than a simple bounce back in this move.

- The Swing indicator and the Power Level (PL) are at '3' (neutral), but it is not a problem because we got a swing indicator at '5'(strong buy) on the 6th of June.

Looking at our Breadth Index (red line), we can see that it is also in positive territory:

Conclusion:

All our indicators give us comfort in our short term bullish scenario.

Nevertheless, we have 2 different scenario for the "ultra short term" (1 or 2 days):

After 5 waves to the downside, the market is in a countertrend move in abc. We believe we are within the 'a' wave of this countertrend rally (subdivided in 5 subwaves).

We believe that the 3 first subwaves of 'a' are finished, but we are not sure than the fourth one is also finished.

Here are our 2 short term scenario:

Scenario 1:

Scenario 2:

If we move to 1301 (scenario 2), we will increase our exposure to the SPX (with a stop loss at 1285).

If we move on a straight line to 1335 (scenario 1), we will cut our long, waiting for a pullback in order to re-enter the market with a target at 1360.

current position: 2/3 long at 1308.02

Have a nice day,

SigmaTradingOscillator