The Sigma Whole Europe Index had a difficult session on Tuesday. This index sharply declined and broke the (red) uptrend. Looking at the size of the black candle, there is no doubt the decline was impulsive.

Looking at key European indexes, we can notice that both the CAC and the EuroStoxx50 broke their (blue) uptrend channel. The CAC is close to a solid support and we wouldn't be surprised if we get a bounce back in order to (at least) retest the uptrend channel by the south.

The DAX didn't break its uptrend so the situation is less dramatic than on other European indexes.

The Stoxx600 is right on a major support. A bounce back from current level is possible; we would be surprised to get a decline on a straight line.

Looking at our indicators, the Swing came in at '1', telling us the decline was highly impulsive. The Sigma Trend Index declined in negative territory. The situation is clearly turning bad in Europe.

The ST model lowered its stops on all our European positions:

The Sigma Whole Market Index had a bad start but it was able to recover most of its losses. The market broke its uptrend channel on an intraday basis but it was able to close in the uptrend channel. So, Tuesday's action looks (at this stage) like a major warning signal rather than a trend reversal.

Another warning signal comes from the Sigma Trend Index where we can notice a major negative divergence between the Sigma Whole Market Index and the Sigma Trend Index. Usually, this kind of negative divergence is the early sign of a correction in the market.

The Nasdaq 100 opened at the lower end of its uptrend channel and closed at the upper end of this uptrend channel. So, it will be very interesting to see what happens next. Break up or roll down?

The Russell 2000 was also able to print a big white candle and the chart looks rather bullish at this stage.

The Sigma Trend Index is slightly negative while other indicators are neutral. It is important to monitor if the trend index is able to bounce back in coming sessions.

Short Term Trading Book:

The Sigma Whole Europe Index enjoyed a very strong session on Friday and closed right below the first strong resistance.

Let's see what happens next week.

Looking at the Stoxx600, we can notice this Index brook its resistance. So, the situation is rather bullish on this index.

The DAX is in the same bullish situation:

But the CAC is much less impressive:

Looking at our indicators, the Swing was at '5', telling the rally was strong and highly impulsive.

The Sigma Whole Market Index remains in its uptrend and there is no sign of reversal. Nevertheless, it is important to notice the market lost most of its momentum in the last 2 weeks. Is it the early sign of a top? We don't know.

The Small Cap600 and the Russell 2000 remain in a mixed situation. Rather difficult to draw a conclusion for those indexes.

The Sigma Trend Index remains around '15'. Other indicators are neutral at '3'.

Short Term Trading Book:

The Sigma Whole Europe Index remains below strong resistances. Draghi will need to be very dovish in order to boost the market above those 3 horizontal resistances. Nevertheless, Central bankers have been so dovish in the latest years that everything is possible. 

Looking at the CAC, the EuroStoxx50, the Stoxx600 and the DAX, we can clearly notice that all those indexes are below (or close to) major resistances. Nevertheless, a good surprise from the ECB could push those markets above their resistances and we could have a powerful year end rally in Europe.

The Sigma Trend Index Europe remains in positive territory and both the Swing and the Power Level5PL) have been neutral for a couple of days. Things will probably change today...

The Sigma Whole Market Index remains very well oriented, there is no sign of reversal. The market is back within its (red) uptrend channel. When the market declined out of this uptrend chanel (at the end of September / early October), we thought the bull market was over. Now, we ask ourself: 'Was it a false break or the early sign of a building top process?'

The Russell 2000, the Mid Cap 400 and the Small Cap600 were able to bounce back but those indexes remain below major resistances.

The Sigma Trend Index remains in positive territory and the Swing was at '4' (for the second time), telling us the session was rather impulsive.

The ST model uplifted its stop on the SPX:

Short Term Trading Book:

The Sigma Whole Europe Index was under pressure in the morning but it was able to recover most of its losses before the end of the session. That was the same pattern than on Friday. It is clear that investors are betting a lot on ECB's meeting later this week: the consensus is waiting for more dovish comments from M. Draghi during its conference (about a possible QE in Europe).

Looking at key European indexes, we can notice that most of them seem ready for another upleg: recent advance looks like a 4 waves advance => we need a 5th one in order to complete the move.

The Sigma Trend Index declined to '11 but it remains well above its zero line. There is no sign of impulse move at this stage.

The ST model computed new stop levels for some indexes:

The Sigma Whole Market Index was under pressure on Monday.

While the Nasdaq 100 seems to be in a consolidation mode, the Russell 2000, the S&P Mid Cap 400 and the S&P Small Cap 600 seem to be in trouble. Those indexes stalled at/near key resistance levels. This is something to monitor in coming sessions.

The Sigma Trend Index slid in negative territory. Both the Swing and the power Level(PL) were at '2'. This tells us the decline was rather impulsive.

The ST model sharply uplifted its stop on the NDX:

Short Term Trading Book:

The Sigma Whole Europe Index had a quiet session on Thursday and was able to book some modest gains. Nevertheless, this index seems unable to move above its pink horizontal resistance (at least for the time being). It sounds clear that investors are waiting for the December's ECB meeting.

The Sigma trend Index Europe is unchanged at '31'. Other indicators were neutral at '3', this confirms the session was very quiet.

Short Term Trading Book: