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A Top Could Be Reached Next Week

When we look at the chart of the Sigma Whole Market Index, we can notice the market is actually in a 5th wave. According to Elliott Wave theory, the 5th wave is the last wave of an uptrend prior to 3 waves of correction (in abc).

So, there is a high probability that a short (or medium) term top is around the corner.

Sigma Whole market Index Chart

The Sigma Trend Index is at '18'. So, we are not far from the key '34' level (required level for a building top process) but we need another upleg early next week.

Sigma Trend Index

The short term model (ST model) uplifted all stops. We added the Eurostoxx50 to the daily reporting but we don't have any position on this index:

SPX Short-Term Model Table

NDX Short-Term Model Table

ESTOXX Short-Term Model Table

DAX Short-Term Model Table

CAC Short-Term Model Table

The medium term Sigma Trend Index (based on weekly close) increased from '20' to '28' but the model is unchanged on the week.

Sigma Trend Medium-Term Table

The medium term model (MT model) remains in sell mode and we are not far from the stop loss.

SPX Medium-Term Table

Short Term Trading Book:
- SPX: 1 long at 1588.17
(stop @ 1603, 3pts below the ST model to take into account bid/ask spread)
- NDX: 1 long at 2868.65 (stop @ 2863, 5pts below the ST model to take into account bid/ask spread)
- CAC: 1 long at 3657.24 (stop @ 3733, 5pts below the ST model to take into account bid/ask spread)
- DAX: 1 long at 7817.14 (stop @ 7856, 10pts below the ST model to take into account bid/ask spread)

Medium Term Trading Book:
- SPX: 2 shorts at 1682.84
(stop @ 1724, 3pts above the MT model to take into account bid/ask spread)

 


For those of you interested in our trades, you can visit our site. You can also subscribe to our twitter account (@SigmaTradingOsc), it is free and you are updated on our latest view/trades. A full description of our ST model and MT model is also available on our site.

 

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