Good morning everyone.

A lot of things happened during our holidays and we hope you were able to catch meaningful part of those moves.

For the time being, US indexes remain relatively resilient while Europe is under heavy pressure.

According to our indexes, US indexes should remain under pressure.

We can notice that our Sigma Trend Index is in negative territory for a while. The sell signal (triggered by 2 consecutive closes in negative territory) was generated on the 5th of April.

We have the same information with our Breadth index but we can also notice on this index that after reaching short term panic level on the 10th of April (horizontal green line), the market bounced back during two sessions, and retested its "zero line" on the 12th of April.

As long as the Breadth index remains in negative territory, our sell signal remains valid.

On this chart we can notice that the ST panic reached 58% on the 10th of April. This level was the clear signal for a short term rebound. Now that the ST panic level is "normalized", the market can easily resume its downtrend if it wants ...

Conclusion:

As long as our Breadth index and our SigmaTrading Oscillator remain in negative territory, we keep our negative view on the market.

Have a nice day,