We can notice two important things from yesterday's session:
- we had an important reversal day, and the market printed a 'doji'
- the market struggles to remain above the green line
We stick to our view that the green uptrend is crucial, and we expect a sharp acceleration to the downside if/when this major support breaks.
The Sigma Trend Index is unchanged at '-2'. Other indicators are at '3', in neutral territory.
Without a Swing or a Power Level (PL) at '2' (or '1'), it is too early to say that a trend reversal is in place.
The Breadth index continues to slide, declining from '-2' to '-4'. This situation underlines that market's dynamic is weakening.
Conclusion:
Market is on a major support, we expect a sharp acceleration to the downside if/when this major support breaks.
Looking at our indicators, we can notice that market internals continue to weaken.
So, we believe that those supports won't resist to market pressure.
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Short term position:
- short 1 NDX at 2785.76
- short 1 CAC at 3428.79
Medium term positions:
- short 2 SPX at 1336.99
- short 1 NDX at 2578.46
- short 1.5 CAC at 3103.87
