When we look at different charts, it is (for most of them) rather difficult to detect if they are weakening or not.
When we have a look at the Sigma Whole Market Index (mainly focused on USA), we can see the rally was stopped by the upper end of the uptrend and it is difficult to say if we are (now) in a correction or in a consolidation phase.
When we have a look at the DAX, the situation is in line with the Sigma Whole Market Index.
But when we analyze the CAC, we can notice a (blue) triangle in formation, and this pattern looks like a consolidation in an uptrend. So, it is very important to monitor this triangle and to see if we break it by the north or by the south in coming sessions. The breakout will give us the direction of the next big move.
There is no new information coming from our indicators. The Sigma Trend Index is at '3' and remains in positive territory. It will be important to monitor (next week) if the market is able to challenge the "STI's zero line."
The ST model lowered its stop on the SPX:
Short Term Trading Book:
- SPX: 1 short at 1722.12 (stop @ 1749, 3pts above the ST model to take into account bid/ask spread)
- NDX: 1 short at 3173.42 (stop @ 3317, 5pts above the ST model to take into account bid/ask spread)
- CAC: 1 short at 4104.63 (stop @ 4337, 5pts above the ST model to take into account bid/ask spread)
- DAX: 1 short at 8682.24 (stop @ 8892, 10pts above ST model to take into account bid/ask spread)
- EStoxx: 1 short at 2931.37 (stop @ 2988, 5pts above the ST model to take into account bid/ask spread)
Medium Term Trading Book:
- No more medium term position at this stage.
For those of you interested in our trades or in our methodology, you can visit our site. A full description of our ST model and MT model is available on our site. You can also subscribe to our twitter account (@SigmaTradingOsc), it is free and you are updated on our latest view/trades.
