The stock market quickly erased Wednesday’s gains and closed almost on the lows of the day with awful breadth: only 581 stocks advanced compared to 3205 that settled down. Although our indicators have improved recently into the right direction for the S&P 500, this is not the case for the Nasdaq where we haven’t observed for the time being serious signs of capitulation from market participants. The weekly survey among active professional traders points out to a high degree of pessimism, similar to the level reached at the bottom of the market in December 2018, a good sign. In the option market, hedging activity is running at a high level and some of our indicators are entering into the green zone.