Last week I wrote:
"What did I write last week? "I expect this pullback to move up to the upper side of the BBS channel. But for the medium term I guess that the index will continue the move down towards the low side of the pitchfork channel and the 200 day average, retracing more than 100% of the start of wave 3.17 and the top of wave 3.18". Believe it or not, but we reached exactly the 200 day average. The index retraced 100% of the up wave 3.71-3.18. We now have support from a previous low; the start of wave 3.17 up and the 200 day average. That will most probably be enough support to create a pullback. Longer term, I believe we have started the larger correction".
The low side of the previous up moving pitchfork, a previous low and the 200 day average gave not enough support. The index moved further down reaching on Wednesday the 161.8% Fibonacci target and a low of 1820. Thursday and Friday brought an up pullback towards the 200 day average and the previous low of the start of wave 3.17. This may be already the end of the retracement or there may be some more up move towards the S2 support pivot of the month and the upper side of the BBS band. We have already a confirmed 123 wave 3.1 down. I assume the long term correction has started and we should expect wave 3.2 down the coming week(s). If you still have long positions, watch them closely.
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