Last week I wrote: "Last week I mentioned a number of reasons for expecting a down move towards the 100 daily average support and the low side of the volatility channel. The index actually past the 100 average moving down to the PP pivot level of the month and the price level support of a previous correction wave E2, the 100% upper reference of the last up Fibonacci projection. It looks like we have a new longer term extended wave 2 correction for the top wave 3.12 in the weekly chart. Price also falls below the up moving wedge pattern. There may be some short term retracement, but we should expect a further move down for the creation of a wave 3.3 down. The minimum target for this is 1850.".
Last week I wrote: "There may be some short term retracement, but we should expect a further move down for the creation of a wave 3.3 down. The minimum target for this is 1850.". If this is the end of the upwards pullback we should continue the longer term down move the coming week. There is some room for extending the last E2 wave just a fraction higher. This is not an impossible scenario before the down trend is resumed. I think we will know by the end of the coming week. On the other hand I do not believe in a continuation of the long term up move. I rather advice to profit from higher prices to start gradually opening short positions.
Sylvain Vervoort Stocata.Org