It looks like the 200d MA is holding on.

In this context, we closed 1/2 short position at 1284.75 => 1334.07 - 1284.75 = 49.32 (gains).

We keep our stop buy at 1302 on the remaining part of our short position.

Have a nice day,

SigmaTradingOscillator

After a difficult start, the market ran 2% (reaching 1320) and closed roughly unchanged.

We were really surprised that the market didn't accelerate when breaking the 1300 level.

We will see what happen after payrolls data

Going back to our key indicators, there is nothing to add, both are in negative territory.

The Sigma Trend Index (STI) is at'-5'. But we don't like a trend Level (TL) in neutral territory at '3': being short, we would like a TL at 1 or 2.

Looking at our Breadth index, it confirmed Wednesday's negative close:

Conclusion:

We remain short, but we are surprised by the lack of negative momentum in this move. It looks like we are (still) in a consolidation move rather than in a new impulse move (to the downside).

We hope to have more clarity after Friday's session.

We will close our short position if the market is able to move above 1326.

Current position: short @ 1334.07

Have a nice day,

SigmaTradingOscillator

Following PMI data, market is under heavy pressure.

I believe we will test the 200d MA either today or tomorrow (~=1280).

If it doesn't hold (~= 1280), market will be in big trouble.

This development is fully in line with what we were waiting for.

Last week we wrote we were expecting a rally in the area 1335 - 1345.

Yesterday the SPX had a top @ 1334.93.

Following a strong open, we decided to close our long position early in the session at 1329.48 (earning 10.56 pts).

We wanted to open a short position at 1336, but after a intraday double top at 1334.93, we lowered our price and opened our short position at 1334.07.

As we expected, our key indicators are now very close to the zero line:

The Breadth Index is already in positive territory (red line)

But the Sigma Trend Index (STI) remains in negative territory ('-3' vs '-5'):

Conclusion:

With our key indicators around the zero line, and our Trend Level (TL) at '3', we can say that markets aren't anymore oversold. If market internals continue to improve from here, then we will be in presence of a trend reversal rather than in presence of a bounce back.

Current position: short @ 1334.07 (Stop loss @ 1346)

Have a nice day,

SigmaTradingOscillator

We closed our long position @ 1329.48 => 1329.48 - 1318.92 = 10.56 (gain).

Our next position will be on the short side: either we sell on strength at 1336 or we will sell when we break 1309