Looking at the wave structure, it looks like a double top remains possible (with a target around 1385 for SPX):

Looking at our indicators, we can notice that the Sigma trend Index (STI) decline to '1' but remains in positive territory. So, according to the STI, a bounce back from here remains possible.

All other indicators are neutral (at '3'):

Looking at the Breadth Index (red line), this index declined to '-5' and closed for the first time in negative territory. If the Breadth Index closes for a second consecutive day in negative territory, then the double top scenario will be at risk:

Conclusion:

As we fear that the market could rally up to 1385 in order to set a major top (prior to a sharp decline around 1200), we decided to slightly reduce our short exposure on both the CAC40 and the SPX (see our internet site for details on price).

We remain short because we are convinced that a major top is around the corner, and we don't want to miss the decline if this top has already been reached.

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.

Current position:
- short 1.5 SPX at 1331.28 (no more stop loss)
- short 1/2 CAC at 3254.74 (we will probably close the remaining part tomorrow morning)
- short 1/2 NDX at 2630