The breadth indicator closed for the first time in negative territory, while the Sigma Trend Indicator remains in positive territory. The situation continues to weaken.

Looking at the short term sentiment level, we can notice that after reaching a top last week above 30%, the short term sentiment is now in negative territory. As we are now in negative territory and far from panic level (~= -30%), we have plenty of room for an acceleration to the downside.

The summation 21 index remains in sell territory.

Conclusion:

It looks like we have all components for a short term trend reversal (at least). We are waiting for a confirmation from our indicators (2 consecutive closes in negative territory from both the Sigma trend Index and the breadth index).

Have a nice day,