The Sigma Whole Market Index sharply declined on Wednesday and found some support on the (light bue) hrizontal support. This 'hanging man' is a bullish pattern if it is confirmed the following day. So, to be followed...

If the light blue horizontal support can't hold, the next 'natural' support is the green horizontal line.

The Sigma trend Index is once again in oversold territorybut other indicators are neutral.

Nearly all our positions were stopped (except for the NDX): (European ones were stopped during the US session)

- SPX stopped @ 1827.81 -> 1827.81 - 1882.29 = -54.48

- CAC stopped @ 3690.54 -> 3590.54 - 3824.47 = -233.93

- EStoxx stopped @ 2920.67 -> 2920.67 - 3003.48 = -82.81

- DAX stopped @ 8447.5 -> 8447.5 - 8828.25 = -380.75

Short Term Trading Book:
 

The Sigma Whole Market Index took another big hit on Monday. It is now on a major horizontal upport. It is key to keep this level or we van get another nasty slide.

We can see the same situation on the Eurostoxx50.

Nevertheless, some other key indexes have just broken their support, so the situation remains highly dangerous.

The Sigma Trend Index remains in highly oversold territory. And the Swing at '1' is telling us the decline is highly impulsive.

We remain out of this market at this stage, and we believe this market is highly dangerous:

Short Term Trading Book:
 

The Sgima Whole Market Index lost its Wednesday's gain. We are once again close to the major horizontal support.

Both the Russell 2000 and the S&P Mid Cap400 closed at the low of the session. Those indexes are very close to print new lows.

It is interesting to notice that the Sigma Smart Money Index sharply decined (blue line). This means that smart investors sharply reduced their exposure to the market.

Looking at some European indexes, we can notice we are still above last month's low.

The Sigma Trend Index fall back in negative territory and both the Swing and the Power Level are telling us we had an impulsive session.

There is no change in our positions at this stage:

Short Term Trading Book:
 

The Sigma Whole Market Index was unable to move above its pink horizontal resistance.This is not a good signal, it is very important to move above this level in coming days.

We have the same situation on the S&P Small Cap 600. This is something to monitor in coming sessions.

There is no new information coming from our indicators. The Sigma Trend Index remains at '-10'.

The ST model computed new stop levels on most of our positions:

Short Term Trading Book:
 

The Sigma Whole MArket Index was roughly flat at the open. Then it came under heavy selling pressure during the first hours of trading. Thereafter,  it was able to rally and close roughly unchanged, printing a clear hanging man.

We are not far from the horizontal support and it will be important to see what happens there if we test this level.

Nevertheless, we can already say that recent decline made a lot of damages because it confirmed the medium term uptrend is broken (red uptrend channel). This is (at least) short term bearish.

The Mid Cap 400, the Nasdaq 100 and the Russell 2000 led the rebound on Thursday. Looking at their charts, we are not surprised that they rebounded because they were on (or very close to) strong supports..

The Sigma Trend Index remains at highly oversold levels.

We had a stop on our SPX at 1926 and even if the intraday low was at 1926.03, we were stopped due to the bid/ask spread => at the lowest point of the session, always a frustration...

Spx: stopped at 1925.97 => 1925.97 - 1936.12 = -10.15 (loss)

Short Term Trading Book: