The market declined on Thursday. Once again we are very surprised by the "decorrelation" between Europe & US. Is it really possible to get a true decorrelation or is it only a temporary effect due to US election (=>deny the European contamination until election are over)?

Whatever the reason is, we don't care and we remain focus on our indicators.

After being very close to the zero line on Tuesday, our Sigma trend Index (STI) declined slightly and is now at -6. At this level, we can say that the trend is down.

Nevertheless, with a Power Level (PL) at 3 (on a scale from 1 to 5), this downtrend is "mild".

As long as our Sigma Trend Index (red line on the chart below) remains in negative territory, with have no reason for cutting our short position.

After being one day in positive territory, our Breadth index moved again in negative territory.

Conclusion:

Our indicators remain in favor of a downtrend, but we feel like this decline lack of momentum.

Current position: short

Have a nice day.