The market surged on Tuesday, and our buy signal triggered last Friday was good (so far).
We are in a situation where our key indexes remain in positive territory but we are now very close to euphoria level: moving within one week from oversold level to euphoria level show that market is very nervous and that situation can change very fast.
If we reach euphoria level (see breadth chart), we will short very aggressively the market.
Our Sigma trend Index is at its highest level since the 1st of July 2011. The top in the S&P500 was reached on the 8th of July 2011 , and then the market declined more than 25%.
A remake of this situation can't be excluded.
Have a nice day,
