The Sigma Whole Market Index was able to print a new record high. The momentum is slowing fast but there is no warning sign at this stage.

In Europe, the situation remains unimpressive. As long as the market remains below the pink horizontal resistance, there is a high probability to get further weakness in this region.

There is no new information coming from our ST model. All indicators are neutral. Nevertheless, we can notice the Sigma Trend Index(STI) continnues to slide and it is not far from its zero line. This is another way to see that the momentum is declining.

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

Short Term Trading Book:
 

The Sigma Whole Market Index enjoyed a quiet session on Friday. It seems that the volatility is sharply declining. The market is consolidating at elevated levels and we see no warning signal at this time. Nevertheless, the triple top scenario remains still possible.

Looking at the Sigma Whole Europe Index, we can see the chart is much less bullish than the global one: recent rally only retraced 61.8% of the October's decline. This underlines that European markets remain in a dangerous situation. A sharp pullback remains a clear possibility.

The ST model didn't provide any new signal on Friday: all indicators were neutral.

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

Short Term Trading Book:
 

The Sigma Whole Market Index enjoyed a quiet and positive session on Wednesday. The market remains below its major resistance but there is no sign of reversal at this stage.

Recent action looks like a consolidation in an uptrend and we should be prepared for higher levels in coming sessions.

Most European indexes filled their gap (from Friday's open) on Tuesday and they resumed their advance on Wednesday.

Neither the Power Level (PL) nor the Swing index have been able to decline below '3' since last Friday. This means we didn't get any (negative) impulse signal since the Sigma trend Index hit the key '34' level. So, the warning is over and the ST model won't be able to generate a 'sell' signal.

There is no change in our trading book.

Short Term Trading Book:
 

The Sigma Whole Market Index remains below its red horizontal resistance and it printed a 'doji' on Monday. So, there is some uncertainties in the market. Triple top or not? The question remains open at this stage.

Looking at some US and European indexes, we can notice some kind of reversal during the session. So, we will have to monitor if it is a consolidation after a huge rally or if it is the early stage of something more serious.

Looking at European indexes, it seems that recent advance is a rebound rather than the start of a new upleg (small retracement of the recent decline while US retraced nearly all the decline).

It is also interesting to underline the huge negative divergence between the Sigma Smart Money Index and the Sigma Whole Market Index. This is a major warning signal for the bull case.

Looking at our indicators, both the Swing and the Power Level (PL) were neutral on Monday (at '3'). So, there is no sell signal at this stage. (For more details on or methodology, you can click on the link in the right column).

The ST model uplifted its stops on our positions.

Short Term Trading Book:
 

There is nothing important this morning (we can say, see or analyze) because the BOJ decided to increase the size of its balance sheet (just when the Fed decided to limit it) and the equity market (around the world) loved the decision.

We know we should get a huge gap at the open but it will be interesting to see if the gains are sustainable or if the investors take this oportunity to sharply reduce their exposure to equities.

The Sigma trend Index will be important to monitor because a close abve the key '34' level on Friday would be the first element for a sell signal next week.

The IBEX was stopped on Thursday because this index declined below our stop level. (We had no position on this index but we want to report it for the ones who are interested by this index).

The ST model uplifted its stop for some indexes:

Short Term Trading Book: