Looking at the chart, it seems obvious that this move is not impulsive and as long as the market remains above the two pink lines, a new high remains possible.
Looking at our indicators, there is no sign of impulse, both the Swing and the Power Level (PL) are neutral at '3'.
The Sigma Trend Index is close to zero, so we have to mnitor if the market is able to bounce back from here.
As none of the stops has been reached on our short term model (1526.97 on SPX and 2758.13 on NDX), it remains in 'buy' mode (at this stage) for both the NDX and the SPX:
Current move doesn't look like an impulse move, and this situation is confirmed by our indicators. In this context, we don't want to have a short term short position and we will close our short term short on the CAC40 at market open.
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Short term positions:
- short 1/2 CAC at 3852.02
Medium term positions:
- short 3 SPX at 1446.09
- Short 1 NDX at 2758.8
- short 2 CAC at 3251.07