The Sigma Whole Europe Index continues to rebound but it remains well below its annual record. Current rebound remains unconvincing (for me).

Looking at some European indexes, the situation is the same: most indexes are at critical levels and it would be very important to move higher in order to generate a new up leg.

The Sigma Trend Index is in positive territory (at '2') other indicators are neutral at '3'.

The Sigma Whole Market Index printed a new record and was able to close the week above the red horizontal resistance. This is positive.

Looking at some US indexes, we can notice that both the Russell2000 and the Small Cap600 were finally able to print new record highs. The NDX is losing some of its momentum but there is no major danger at this stage: the double top scenario on the NDX is something to monitor.

The Sigma Trend Index remains well above its zero line but we are far from the key '34' level (required level in order to generate a sell signal).

The ST model uplifted its stop on the SPX.

Short Term Trading Book: 

The Sigma Whole Europe Index continues to bounce back but the situation remains less convincing than in US: this index continues to print lower highs and this is not good on a medium term basis.

Looking at some specific European Indexes, it is difficult to turn bullish. Current action continues to look like a counter trend move.

Looking at our indicators, there is no new information. The Sigma Trend Index is right on its zero line. Other indicators are neutral at '3'.

The Sigma Whole Market Index is close to print new all-time highs. If we move in record territory, it will be important to consolidate recent advance because the run up was so steep that a 'bull trap' is highly possible. 

The good news is coming from the Small Cap 600, the Mid Cap400 and the Russell2000: those markets are finally able to move above key resistances.

The S&P500 is close to print new all-time high and we believe it will do it. Nevertheless, it will be very important to consolidate recent gains in record territory because recent advance could be a bull trap.

Looking at our indicators, the Sigma Trend Index remains in positive territory. The Swing came in at '4' telling us the session was slightly impulsive.

Short Term Trading Book: 

The Sigma Whole Europe Index had a great session on Thursday: the market gapped up at the open, it continued its advance during the session and closed at its intraday high. The market is right below a major resistance, let's see what happens here.

Looking at key European indexes, we can notice the rally was very impulsive on all major markets:

The Swing Indicator came in at '5', telling us the rally was highly impulsive. The Sigma trend Index is now testing its zero line.

The rally was so strong that we were stopped on all our European short positions (some in extended hours, during US session):

- CAC: 4380.87 - 4245.1 =135.77 (gains)

- EStoxx: 3230.03 - 3177.21 = 52.82 (gains)

- DAX: 9924.15 - 9807.55 = 116.6 (gains)

- IBEX: 10663.8 - 10390.35 = 273.45 (gains)

The Sigma Whole Market Index continues its huge rally, this is impressive. I feel much younger, 15years younger... 

All key indexes were able to book huge gains on Thursday. It seems like nothing can stop this bull market. 

The Sigma Trend Index is now in positive territory. The swing came in at '5', telling us the rally was highly impulsive. 

The ST model uplifted its stops for both the NDX and the SPX:

Short Term Trading Book:

The Sigma Whole Europe Index had a volatile day: the market had initially been under heavy selling pressure but in the last 2 hours of the trading session, the market enjoyed a powerful rally and closed well in positive territory.

This could be a reversal day but when the market is so oversold, a powerful rally doesn't necessarily mean a reversal day.

Looking at key European indexes, we can see the same pattern than on the Sigma Whole Europe Index: a new sell off followed by a strong rally.

Looking at our indicators, the Sigma Trend Index strongly bounced back from '-153' to '-29. The Swing came in at '5' telling the rally was highly impulsive but as the STI was below '-125' (free fall level), the ST model didn't generate a 'buy' signal.

The ST model lowered its stop levels on all European positions:

The Sigma Whole Market Index continues to slide and the pattern is the exact opposite from the European one: after a weak start, the market enjoyed a strong rally during the first hours of trading followed by a new sell off at the end of the session. So, this sounds rather bearish, once again.

Looking at key US indexes, we can notice that all of them are now below major supports. Even the Nasdaq100 broke its horizontal support. Based on those charts, it seems that more selling pressure is on the agenda.

Looking at our indicators the Sigma Trend Index remains in negative territory but there is no capitulation sign coming from the Trend Level(TL) or the Swing indicator.

The SPX index declined below our stop level. So we closed our long position and booked our gains:

1971.86 - 1892.65 = 79.21 (gains)

Short Term Trading Book:

The Sigma Whole Europe Index had a difficult session on Friday: it was unable to keep its blue horizontal support and a massive sell off occurred.

Looking at our indicators, the Sigma Trend Index is oversold at '-81'. Both the Swing and the Power Level (PL) were at '1', telling us the decline was highly impulsive.

The ST model lowered its stop levels on all European positions:

The Sigma Whole Market Index was under on Friday but there is no comparison with what is happening in Europe. The SWMI was able to keep a major horizontal support. So, let's see what happens on Monday.

Looking at our indicators, the Sigma trend Index is at '-96'. Both the Swig and the Power Level (PL) came in at '1' on Friday, telling us the decline was impulsive.

Short Term Trading Book: