The market continues to rally and it seems obvious we are in a 5th of 5. According to Elliott Wave theory, an advance move is subdivided in 5 waves and it is followed by 3 waves of decline.

The Trend Level climbed again to '5', other indicators are neutral at '3'. We need a swing and or a power level (PL) at '1' in order to give a 'sell' signal.

The Sigma Trend Index draws a negative divergence with the market. This is a major warning signal for the market:

Our short term model remains in buy mode at this time for both the SPX and the NDX:

Conclusion:

There are a lot of warning signals for the market and this uptrend is maybe close to an end. Friday is an expiration day and it could be an important turning point.

If we get an intraday signal, we will open a position. (if the 'sell' signal is not confirmed 10min before the close, we will close the 'new' position)

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.

Short term positions:
no more position

Medium term positions:
- short 3 SPX at 1446.09
- short 1 NDX at 2758.8
- short 2 CAC at 3251.07