• 543 days Will The ECB Continue To Hike Rates?
  • 543 days Forbes: Aramco Remains Largest Company In The Middle East
  • 545 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 945 days Could Crypto Overtake Traditional Investment?
  • 950 days Americans Still Quitting Jobs At Record Pace
  • 952 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 955 days Is The Dollar Too Strong?
  • 955 days Big Tech Disappoints Investors on Earnings Calls
  • 956 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 958 days China Is Quietly Trying To Distance Itself From Russia
  • 958 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 962 days Crypto Investors Won Big In 2021
  • 962 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 963 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 965 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 966 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 969 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 970 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 970 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 972 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Bounce Back Probably Over, Next Target 1200

Yesterday we wrote:

"Looking at our indicators, we can notice that the Trend Level (TL) is once again in overbought territory (at '5'). A reversal from the Swing or the Power Level (declining to '1') would give us a warning signal that a top could be in place."

Tonight, looking at our indicators, we can notice that the Swing is at '1' and the Power Level (PL) is at '2'. This is a warning signal that the whole bounce back (in 'abc') is probably over and that the market is ready far a SHARP and FAST correction:

Sigma Table

Looking at our Sigma Whole Market chart (aggregate of 16 US indexes), we can notice that today's decline made a lot of damage and brook important support.

We believe a short term bounce back is on the agenda tomorrow or Friday, but we won't ride it, this move is just too fast, and we want to stay in:

Sigma Whole Market Index

Conclusion:

We believe the counter trend rally is over, and we expect a SHARP and FAST decline to 1200 on the SPX.

Current position: short 1.5x std size SPX at 1336.48

For those of you interested in our intraday move, you can visit our site during the day: we post all our trades in real time. You can also subscribe to our twitter account (@SigmaTradingOsc), it is free and you are updated on our latest view/trades.

Have a nice day,

 

Back to homepage

Leave a comment

Leave a comment