• 287 days Will The ECB Continue To Hike Rates?
  • 287 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

Probably Not at the Top But Some Clouds Appear

It seems clear now that the market is engaged in a double zigzag corrective move. We are probably now in the last part of this counter trend rally, but looking at the move structure, it doesn't seem we are already at the top. The 1380-1390 area seems achievable:

Sigma Whole Market Index

Looking at the Sigma Trend Index, this indicator continues to improve, moving from'4' to '9'. Other indicators remain at '3' (neutral).

Sigma Table

But looking at the breadth index, we can notice the early sign of a negative divergence: the market (blue line) is close to new highs while the breadth index (red line) remains well below previous top.

We must monitor the evolution of the situation (on the breadth index) because a confirmed negative divergence should be interpreted as a warning signal that the top could have been reached.

Market Breadth

Conclusion:

We remain comfortable with both our short and medium term positions because we believe we are close to a major top in the market (short on medium term) but not there yet (long on short term).

For those of you interested in our intraday move, you can visit our site during the day: we post all our trades in real time. You can also subscribe to our twitter account (@SigmaTradingOsc), it is free and you are updated on our latest view/trades.

Current positions:

Medium term positions:
- short 2 SPX at 1336.99
- short 1 NDX at 2578.46

Short Term positions:
- long 1 SPX 1363.23
- 1/2 long CAC at 3208.07
- 1/2 long NDX at 2585.95

 

Back to homepage

Leave a comment

Leave a comment