The Sigma Whole MArket Index continues its advance. It seems nothing can stop it.

At the same time, both the Small Cap 600 and the Russell 2000 are close to break their recent downtrend.

Looking at our indicators, there is no change.

Europe remains weaker than US. The ST model computed new stop levels on the CAC, the EStoxx and the IBEX

Short Term Trading Book:

- SPX: short at 1912.06 (stop @ 1981, 3pts above the ST model to take into account bid/ask spread)

- NDX: short at 3720.24 (stop @ 3881, 5pts above the ST model to take into account bid/ask spread)

- CAC: short at 4526.78 (stop @ 4621, 5pts above the ST model to take into account bid/ask spread)

- EStox: short at 3242.67 (stop @ 3354, 5pts above the ST model to take into account bid/ask spread)

- DAX: short at 9936.15 (stop @ 10085, 10pts above the ST model to take into account bid/ask spread)

- IBEX: short at 110496.6 (stop @ 11296, 10pts above the ST model to take into account bid/ask spread)

Medium Term Trading Book:

- No more medium term position at this stage.

As we wrote yesterday, Tuesday's reversal needs a confirmation in order to become a key reversal day. If the market is able to print a new high then the reversal scenario will be dismissed.

The Swing move at '4', telling us the move was impulsive.

The ST model computed new stop levels for the CAC, the EStoxx and the IBEX:

Short Term Trading Book:

- SPX: short at 1912.06 (stop @ 1981, 3pts above the ST model to take into account bid/ask spread)

- NDX: short at 3720.24 (stop @ 3881, 5pts above the ST model to take into account bid/ask spread)

- CAC: short at 4526.78 (stop @ 4652, 5pts above the ST model to take into account bid/ask spread)

- EStox: short at 3242.67 (stop @ 3378, 5pts above the ST model to take into account bid/ask spread)

- DAX: short at 9936.15 (stop @ 10138, 10pts above the ST model to take into account bid/ask spread)

- IBEX: short at 110496.6 (stop @ 11329, 10pts above the ST model to take into account bid/ask spread)

Medium Term Trading Book:

- No more medium term position at this stage.

I'm on the road this week, and I only have my netbook with me. So, different screenshots are rather small (limited to the size of the screen).

The Sigma Whole Market Index continues its advance,  the market was able to print a new 52 week high.

Looking at our indicators, the Sigma Trend Index is going up again and the the swing was at '4', telling us the move was impulsive.

We are experiencing difficult time. We are not far from our stop losses, and we have no sign of reversal. The model has a strong track record on a 2years basis, but it is 100% right. Sometimes, we have to book losses.

Short Term Trading Book:

- SPX: short at 1912.06 (stop @ 1981, 3pts above the ST model to take into account bid/ask spread)

- NDX: short at 3720.24 (stop @ 3881, 5pts above the ST model to take into account bid/ask spread)

- CAC: short at 4526.78 (stop @ 4696, 5pts above the ST model to take into account bid/ask spread)

- EStox: short at 3242.67 (stop @ 3387, 5pts above the ST model to take into account bid/ask spread)

- DAX: short at 9936.15 (stop @ 10138, 10pts above the ST model to take into account bid/ask spread)

- IBEX: short at 110496.6 (stop @ 11397, 10pts above 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:  

- 2 short NDX @ 3487.38

The market remains resilient, and there isn't any acceleration to the downside. The market is (probably) waiting for the FOMC meeting.

Nevertheless, looking at recent evolution of both the Sigma Smart Money Index (SSMI) and the Sigma Whole Market Index (SWMI), we can notice a negative divergence. This implies that smart investors are reducing their exposure to the market. This index has a pretty good track record at turning points in the market. So, we will monitor its evolution in coming days.

There is no change in our indicators.

The ST model computed new stop level for the IBEX:

Short Term Trading Book:

- SPX: short at 1912.06 (stop @ 1981, 3pts above the ST model to take into account bid/ask spread)

- NDX: short at 3720.24 (stop @ 3881, 5pts above the ST model to take into account bid/ask spread)

- CAC: short at 4526.78 (stop @ 4696, 5pts above the ST model to take into account bid/ask spread)

- EStox: short at 3242.67 (stop @ 3387, 5pts above the ST model to take into account bid/ask spread)

- DAX: short at 9936.15 (stop @ 10138, 10pts above the ST model to take into account bid/ask spread)

- IBEX: short at 110496.6 (stop @ 11397, 10pts above 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:  

- 2 short NDX @ 3487.38

I'll be traveling for the rest of the week (roadshow). So, I'll post the update when I have time (should be later than usual).

The Sigma Whole market index declined on Thursday. As we identified a 5 waves (advance) pattern a few days ago, we believe we will get an 'abc' correction / pullback in coming sessions.

  The Swing declined to '2'. As the Sigma Trend Index was above the key '34' level three sessions ago, the ST model generated a fresh sell signal (for more details on buy/sell signal, have a look at our methodology, link in the right column).

The ST model computed new stop levels on all indexes:

We sold 1 IBEX at 11049.6

Short Term Trading Book:

- SPX: short at 1912.06 (stop @ 1981, 3pts above the ST model to take into account bid/ask spread)

- NDX: short at 3720.24 (stop @ 3881, 5pts above the ST model to take into account bid/ask spread)

- CAC: short at 4526.78 (stop @ 4764, 5pts above the ST model to take into account bid/ask spread)

- EStox: short at 3242.67 (stop @ 3404, 5pts above the ST model to take into account bid/ask spread)

- DAX: short at 9936.15 (stop @ 10197, 10pts above the ST model to take into account bid/ask spread)

- IBEX: short at 110496.6 (stop @ 11459, 10pts above 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:  

- 2 short NDX @ 3487.38