With a Sigma Trend Indicator (STI) above 50 (56 in fact), there is a high level of probability that the top is in or very close.

In this context, we see no reason for closing our short position now.

But our summation 21 index remains in buy territory, and there is no sign of reversal for the time being.

As we already wrote few weeks ago, the most extreme moves are done in overbought (or oversold) territory.

So, we will cut the position we opened on Friday if the sp500 is able to move above 1350 (the position we sold on Friday at 1338). In this case, we will wait for a reversal day or a clear signal from one of our indicator in order to short again the market.

Have a nice week-end,