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Europe is Ready for a Sell Signal

This is not the case in US but Friday's session looks like a reversal day

Europe:

The Sigma Whole Europe Index (SWEI) enjoyed a strong rally on Friday. The index is right below a major resistance (pink horizontal line).

Sigma Wholr Europe Index

Looking at the CAC, DAX and the Eurostoxx, we can notice the situation is roughly the same than on the SWEI. For both the CAC and the DAX, we can clearly identify an uptrend channel (in blue). As we are not at the top end of this uptrend some upside remains possible.

CAC

DAX

STOXX 60

Nevertheless, the Sigma Trend Index in Europe surged to '68' on Friday. This level is well above the key '34' level required for a sell signal. So, if the Swing or the Power Level dropped below '2' in the next 3 sessions, we will get a confirmed sell signal on European Markets. (For more details on buy/sell signal, have a look at our methodology)

EU daily Model

The ST model uplifted its stop on the DAX:

DAX Short term


United States:

The Sigma Whole Market Index had a difficult session on Friday. The market printed a huge gap at the open and continued to rally during the first minutes of the session. Thereafter, the market started to decline and it closed well below its intraday high. The market printed a clear 'doji' on Friday.

Sigma Whole market Index

Looking at some major US indexes, we can clearly see that Friday's session looks like a reversal day: open near the intraday high and close near the intraday low.

NDX

R2K

S&P Mid-Cap 400

S&P Small Cap 600

The Sigma Trend Index is still far from the key '34' level (at '16'). So, at this stage, it will be impossible to get a 'sell' on US markets.

ST Model

The ST model uplifted its stops on both the SPX and the NDX:

SPX Short Term

NDX Short term


Short Term Trading Book:

- SPX: long at 1892.65 (stop @ 1968, 3pts below the ST model to take into account bid/ask spread)
- NDX: long at 3828.03(stop @ 3994, 5pts below the ST model to take into account bid/ask spread)
- CAC: stopped
- EuroStoxx50: stopped
- DAX: long at 8769.25(stop @ 9205, 10pts below the ST model to take into account bid/ask spread)
- IBEX: stopped

 


For those of you interested in our trades or in our methodology, you can visit our site. A full description of our ST 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.

 

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