Looking at the chart of the Sigma Whole Market Index we can notice the market remains in its trading range, there is no new information; we need to wait for the breakout in order to get an indication on the next move. Nevertheless, it becomes very difficult for equities to move above recent highs and this is more a sign of weakness rather than a sign of strength.

Looking at our indicators, the Sigma Trend Index remains close to its zero line and other index remains neutral at '3'.

The ST model uplifted its stop on the SPX:

There is no change in our trading book at this stage:

Short Term Trading Book:

- SPX: long at 1830.28 (stop @ 1810, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3477.72(stop @ 3405, 5pts below the ST model to take into account bid/ask spread) 

- CAC: long at 4374.06(stop @ 4340, 5pts below the ST model to take into account bid/ask spread) 

- EStoxx: long at 3115.67 (stop @ 3103, 5pts below the ST model to take into account bid/ask spread)

- DAX: stopped

- IBEX: stopped

Medium Term Trading Book:

- No more medium term position at this stage.

Out of model position: 

- 1 put SPX, MAY, strike 1400 @ usd2.85

- 2 short NDX @ 3487.38

The market enjoyed a quiet session on Wednesday: volatility remains at low level and it remains difficult to anticipate the direction of the next big move. We continue to believe it is better to wait for the breakout of current trading range (blue horizontal lines).

Looking at our indicators, there is no change.

Short Term Trading Book:

- SPX: long at 1830.28 (stop @ 1807, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3477.72(stop @ 3405, 5pts below the ST model to take into account bid/ask spread) 

- CAC: long at 4374.06(stop @ 4340, 5pts below the ST model to take into account bid/ask spread) 

- EStoxx: long at 3115.67 (stop @ 3103, 5pts below the ST model to take into account bid/ask spread)

- DAX: stopped

- IBEX: stopped

Medium Term Trading Book:

- No more medium term position at this stage.

Out of model position: 

- 1 put SPX, MAY, strike 1400 @ usd2.85

- 2 short NDX @ 3487.38

Market succesfully tested its (blue) horizontal support on Monday. It is crucial for the market to remain in its (red) uptrend.

Looking at relative performance between S&P1500 and US 10y T-Notes, we can notice equities are not anymore able to outperform bonds. Recent action looks like a distribution pattern prior to a major top. Once again it is crucial for equities to remain within this (red) uptrend channel.

Looking at recent relative performance between US cyclicals and US defensive stocks, we can notice that cyclicals continue to underperform. Once again, this is not good for the market.

Looking at relative performance between Large/Mid and Small caps, we can notice that US large caps were able to break a 2years downtrend relative to Small & Mid caps. Once again this situation underlines the market is becoming more and more risk averse, moving from high beta stocks to low beta stocks.

The situation is the same looking at European indexes. Either we are in presence of lower highs (DAX) or we have double top patterns (CAC). This doesn't look positive for equities.

There is no major change in our indicators, the Sigma Trend Index remains above its zero line.

Short Term Trading Book:

- SPX: long at 1830.28 (stop @ 1807, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3477.72(stop @ 3405, 5pts below the ST model to take into account bid/ask spread) 

- CAC: long at 4374.06(stop @ 4338, 5pts below the ST model to take into account bid/ask spread) 

- EStoxx: long at 3115.67 (stop @ 3100, 5pts below the ST model to take into account bid/ask spread)

- DAX: stopped

- IBEX: long at 10131.3(stop @ 10258, 10pts below 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: 

- 1 put SPX, MAY, strike 1400 @ usd2.85

- 2 short NDX @ 3487.38

The Sigma Trend Index continues to consolidate around the pink horizontal line. A retest of previous top seems achievable in coming sessions.

The Sigma Trend Index is unchanged at '4' and remains close to its zero line. Other indicators were neutral (at '3') telling us we are in consolidation phase: the impulsive move is over at this time.

Following some intraday weakness, the DAX hit our stop:

DAX closed at 9427.62 => 9427.62 - 9275.85 = 151.77 (gain)

The ST model uplifted some stops:

Short Term Trading Book:

- SPX: long at 1830.28 (stop @ 1807, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3477.72(stop @ 3405, 5pts below the ST model to take into account bid/ask spread) 

- CAC: long at 4374.06(stop @ 4338, 5pts below the ST model to take into account bid/ask spread) 

- EStoxx: long at 3115.67 (stop @ 3100, 5pts below the ST model to take into account bid/ask spread)

- DAX: stopped

- IBEX: long at 10131.3(stop @ 10258, 10pts below 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: 

- 1 put SPX, MAY, strike 1400 @ usd2.85

- 2 short NDX @ 3487.38

The market was able to print its 6th consecutive white candle and closed above the pink horizontal resistance. So, on a short term basis this is bullish but we must keep in mind it took 6 sessions in order to retrace the decline achieved in 2 sessions. So, medium term picture remains unclear at this stage: Is the correction really over or are we in a short term bounce back?

Looking at the relative performance between bonds and equities, we can notice the chart remains in its recent trading range: the market hasn't decided yet.But long term uptrend is intact.

Looking at recent relative performance between US cyclicals and US defensive sectors, we can notice a (recent) strong outperformance of defensive sectors. Nevertheless, the whole consolidation could be an 'abc' correction. If this is the right answer, the cyclical sectors should resume their outperformance (after recent correction).

Looking at our indicators, the Sigma Trend Index is relatively unchanged. The Swing was at '4' on Tuesday, telling us the move remains impulsive.

The ST model uplifted its stop levels on all our positions:

Short Term Trading Book:

- SPX: long at 1830.28 (stop @ 1807, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3477.72(stop @ 3400, 5pts below the ST model to take into account bid/ask spread) 

- CAC: long at 4374.06(stop @ 4333, 5pts below the ST model to take into account bid/ask spread) 

- EStoxx: long at 3115.67 (stop @ 3097, 5pts below the ST model to take into account bid/ask spread)

- DAX: long at 9275.85 (stop @ 9423, 10pts below the ST model to take into account bid/ask spread)

- IBEX: long at 10131.3(stop @ 10189, 10pts below 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: 

- 1 put SPX, MAY, strike 1400 @ usd2.85

- 2 short NDX @ 3487.38