• 308 days Will The ECB Continue To Hike Rates?
  • 308 days Forbes: Aramco Remains Largest Company In The Middle East
  • 310 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 709 days Could Crypto Overtake Traditional Investment?
  • 714 days Americans Still Quitting Jobs At Record Pace
  • 716 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 719 days Is The Dollar Too Strong?
  • 719 days Big Tech Disappoints Investors on Earnings Calls
  • 720 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 722 days China Is Quietly Trying To Distance Itself From Russia
  • 722 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 726 days Crypto Investors Won Big In 2021
  • 727 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 727 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 730 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 730 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 733 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 734 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 734 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 736 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

A Double Top Remains Possible

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'):

Sigma Table

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:

Market Breadth


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


Back to homepage

Leave a comment

Leave a comment