After a difficult start, the market ran 2% (reaching 1320) and closed roughly unchanged.

We were really surprised that the market didn't accelerate when breaking the 1300 level.

We will see what happen after payrolls data.

Going back to our key indicators, there is nothing to add, both are in negative territory.

The Sigma Trend Index (STI) is at'-5'. But we don't like a trend Level (TL) in neutral territory at '3': being short, we would like a TL at 1 or 2.

Looking at our Breadth index, it confirmed Wednesday's negative close:

Conclusion:

We remain short, but we are surprised by the lack of negative momentum in this move. It looks like we are (still) in a consolidation move rather than in a new impulse move (to the downside).

We hope to have more clarity after Friday's session.

We will close our short position if the market is able to move above 1326.

Current position: short @ 1334.07

Have a nice day,