For a couple of days we have been mentioning the risk of a double top in the market and this risk does not seem to be dissipated. With the exception of the Nasdaq100 which has an impressive momentum driven by the few usual actions (Amazon, Microsoft, Alphabet, Netflix), other European and American indices seem to be losing momentum.
The Sigma Whole Europe Index is stuck under a horizontal resistance and the recent rebound takes the structure of an 'M' (double top). It is therefore essential to break the resistance at 2150 pts to invalidate this bearish configuration.
Looking at major European indices, the situation is relatively comparable: the indices seem to be in danger.
The Sigma Whole US Index remains well oriented at this stage and shows no sign of reversal. A double-top configuration is not visible on this index.
On the other hand, on the S & P500, the Russell2000 and the Dow Jones Transport, one can clearly notice this configuration in 'M' characteristic of a double top.
A large number of European and American indices seem to be at risk of forming a double top. We therefore believe that prudence is essential in coming sessions and any negative impulse should be considered as a major alert for investors.
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