• 12 hours Gold Is Still A Safe Haven, But Not Very Alluring
  • 20 hours What Does CHina’s EV Slowdown Mean For The Battery Metals Sector?
  • 1 day COVID Report Cards Will Brand Businesses Forever
  • 2 days Trump Tweet Sends Oil Soaring 25%
  • 2 days Why The Coronavirus Economic Crash Is Worse Than You Think
  • 3 days Is A Global Currency Necessary?
  • 3 days America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 4 days Trump Wants Another $2 Trillion Economic Intervention
  • 4 days The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
  • 5 days Priceless Van Gogh "Spring Garden" Painting Stolen
  • 5 days Oil Falls To $20 For First Time In Nearly Two Decades
  • 5 days COVID-19 Could Be The End Of U.S. Coal
  • 5 days How Much Does Your Social Security Number Cost? $4 On The Dark Web
  • 7 days Silver Stocks Have Been Decimated In The Coronavirus Sell-Off
  • 8 days How Blockchain Tech Could Make Mergers And Acquisitions More Efficient
  • 8 days America’s Shortage Of This Metal Keeps Trump Up At Night
  • 8 days Bidet Bonanza: Defying The Toilet Paper Shortage
  • 9 days U.S. Auto Sales Fall By 75%
  • 9 days Violating Quarantine? Big Brother Is Watching
  • 10 days Does Gold Still Have Some Room To Run?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

First Signs of Weakness

US equity futures and European indexes were pretty strong in first hours of trading in Europe. Nevertheless, the equity market came under some selling pressure later in the session and we got the first signs of weakness in current up leg, mainly in US.


Europe:

We can clearly identify a 5 waves pattern from point 'b?'. So, if the Sigma Whole Europe Index declines below its (red) horizontal support in coming days, the European equity market will be at risk of a major pullback.

Sigma Whole Europe Index

It is also important to notice that the Sigma Trend Index Europe is at '45', well above the key '34' level (section 'Quant Model Europe' -> 'Daily - Mean reversal'). So, if we get an impulsive decline in the next 3 sessions, this will generate a sell signal in our daily quant model.


USA:

We can also identify 5 sub-waves in current from point '4?'. On top of that, as the Sigma Whole US Index printed a 'doji' on Tuesday, this means that current up leg could be over. An impulsive decline in coming session would increase the probability of this scenario.

Sigma Whole US Index


Conclusion:

The equity market gives some signs of weakness, mainly in US. We continue to believe the best trade at this time (on risk/return basis) is short NDX (Nasdaq100).

 


For those of you interested in our analysis, quant models and trades, you can visit our website (www.sigma-invest.com) for a 'free tour'. You can also subscribe to a 30days free trial (full access). You can also subscribe to our twitter account (@SigmaTradingOsc), it is free and you are updated on our latest view/trades.

 

Back to homepage

Leave a comment

Leave a comment