Lots of changes this week as we had weekly ellipse sell signals triggered on the close of last week. The sell signals were triggered for the S&P500, Nasdaq Composite, Russell 2000, Mid-Cap (MDY) and the Dow Transports. The long-term trends remain intact, but we do see about -5% downside. We would like to see how the indices hold their long-term uptrends in the coming days/weeks.
In Europe, the DAX, CAC and Italy's FTSE MIB appear to be failing at resistance. We went long the DAX and CAC last December and will capture about +20% in each index. We are short the Hang Seng and see a minimum of -5% from here.