Looking at our Sigma Whole Market chart (aggregate of 16 US Indexes), we can notice some interesting things:
- The lowest point of today's session = a successful retest of the downtrend (dark blue line)
- Today's high was above yesterday's high
- Once again we did a reversal day (hammer = big line with small body)
At the same time, our key Sigma Trend Index (STI) continues to improve, moving from '-7' to '-6'. On top of that, our Trend Level (TL) moved into neutral territory (score of 3) versus bear camp the day before with a score of 2 (on a scale from 1 to 5, with 1 extremely bearish, 3 neutral, and 5 extremely bullish).
Our Breadth Index continues to improve too:
Conclusion:
All our indicators are pointing in the same direction: a short term bottom is probably in place, and we are now in presence of a bounce back.
Now that the TL is neutral (score of 3), we expect an acceleration to the upside and a quick move to 1335-1345.
Current position: long @ 1318.92
Have a nice day,
