Looking at the weekly chart of the Sigma Whole Market Index, we can notice the market closed for the first time (since early 2010) above its pink ascending resistance. An acceleration at this stage in the cycle is either a false break (bull trap) or a clear breakout leading to an exhaustion move (asymptotic move).

Until Thursday we were close to enter the weekly sell zone but with Friday's weak session, the weekly Sigma Trend Index ended the week at '40' and we are below the key 50 level. ('50' is the required level, on a weekly basis, in order to enter the sell zone). So, we won't be able to get a weekly sell signal next week and the MT model will remain neutral.

(for more detail related to our buy and sell signal, please have a look at our methodology).

Looking at the Short Term model, there was no new information on Friday. The daily Sigma Trend Index closed at 18, well below the key '34' level required for a sell signal (for more detail related to our buy and sell signal, please have a look at our methodology).

The ST model sharply uplifted its stop on the NDX:

Short Term Trading Book:

- SPX: long at 1754.73 (stop @ 1806, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3506.23 (stop @ 3583, 5pts below the ST model to take into account bid/ask spread)

- CAC: long at 4107.69(stop @ 4253, 5pts 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

Wednesday was a low volatility day. In other words, it was a borring day... There is nothing special to notice on the daily chart of the Sigma Whole Market Index but the weekly chart will (probably) be interesting to analyse during the week-end.

Nevertheless, the negative divergence between the Sigma Smart Money Index and the Sigma Whole Market Index is still in place. This is a warning signal for the market.

Looking at our indicators, the Sigma Trend Index eased a little bit to '15' but it remains close to the key '34' level. The end of the week will be very exciting because a surge in the market could push the Sigma Trend Index (daily and weekly)  in 'sell' zone.

The ST model uplifted its stop on the NDX:

Short Term Trading Book:

- SPX: long at 1754.73 (stop @ 1803, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3506.23 (stop @ 3445, 5pts below the ST model to take into account bid/ask spread)

- CAC: long at 4107.69(stop @ 4248, 5pts 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

Looking at the chart of the Sigma Whole Market Index, there is no clear bearish sign. The index was able to recover at the end of the day and the losses were very limited.

Nevertheless, we can notice a major negative divergence between the Sigma Smart Money Index and the Sigma Whole Market Index (higher high vs lower high). This is a bearish sign because the Sigma Smart Money Index has a good track record in catching turning points in the market.

The Sigma Trend Index continues to decline and it is now close to its zero line (at '4'). It will be important to monitor if it remains above it or if it slides in negative territory. The swing was at '2', telling us the  move was slightly impulsive.

Some of our positions were stopped on Monday because their stop levels were hit by the market. We booked some nice gains on these positions:

- IBEX stopped @ 9918.32 => 9918.32 - 9745.8 = 172.52 (gains) (well below our stop but due to a gap down)

- DAX stopped @ 9404.67 => 9404.67 - 9106.25 = 298.42 (gains)

- EStox stopped @ 3093.46 => 3093.46 - 2947.84 = 145.62 (gains)

The ST model uplifted its stop on the SPX:

Short Term Trading Book:

- SPX: long at 1754.73 (stop @ 1799, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3506.23 (stop @ 3442, 5pts below the ST model to take into account bid/ask spread)

- CAC: long at 4107.69(stop @ 4248, 5pts 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

 - 1 short CAC @ 4398

After trading well under water at night (on the future market), US equities opened slightly lower. After some sideways action, the market resumed its uptrend and closed higher for the day. Today's price action is bullish (short term).

In Europe, the CAC is very interesting. After a sharp decline early in the session, printing a false break relative to previous high (by a couple of points), the CAC sharply bounced back at the end of the session and closed nearly flat. Looking at this candle, this also looks short term bullish.

There is no new information coming from our indicators.

The ST model uplifted its stop on the IBEX:

Short Term Trading Book:

- SPX: long at 1754.73 (stop @ 1758, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3506.23 (stop @ 3435, 5pts below the ST model to take into account bid/ask spread)

- CAC: long at 4107.69(stop @ 4248, 5pts below the ST model to take into account bid/ask spread) 

- EStoxx: long at 2947.84 (stop @ 3094, 5pts below the ST model to take into account bid/ask spread)

- DAX: long at 9106.25 (stop @ 9405, 10pts below the ST model to take into account bid/ask spread)

- IBEX: long at 9745.8 (stop @ 9970, 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

The Sigma Whole Market Index printed an inside day on Tuesday (higher low and lower high vs Monday). This tells us the market is looking for its next move.

The market closed, for the second consecutive session, right below the blue resistance.

Looking at our indicators, there is no new information for the day. With a Sigma Trend Index at '10' (STI), there is no possibility to get a sell signal in coming sessions.

The ST model computed new stop levels on some indexes. In the case of the CAC, the model sharply uplifted its stop (by more than 100pts):

Short Term Trading Book:

- SPX: long at 1754.73 (stop @ 1758, 3pts below the ST model to take into account bid/ask spread)

- NDX: long at 3506.23 (stop @ 3435, 5pts below the ST model to take into account bid/ask spread)

- CAC: long at 4107.69(stop @ 4248, 5pts below the ST model to take into account bid/ask spread) 

- EStoxx: long at 2947.84 (stop @ 3094, 5pts below the ST model to take into account bid/ask spread)

- DAX: long at 9106.25 (stop @ 9396, 10pts below the ST model to take into account bid/ask spread)

- IBEX: long at 9745.8 (stop @ 9906, 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 CAC @ 4418