Last week I wrote: "The (mainly Eastern) bulls were fighting to keep the index at high levels, but lost again the past week with a lower index. The only up closing day was on Monday. Thursday the index reached a previous low level, a Fibonacci target and the low side of the BBS channel. With the support from previous lows, the Fibonacci target and the low side of the BBS channel, a trading channel is formed. This may force a move up inside this channel before a new low for wave 3.3 is formed. However we must expect a further move down to the S1 support pivot target of the month, the low side of the volatility channel and the 1850 Fibonacci target the coming week(s). ".
The past week started with a large down candle and moving even a bit lower on Tuesday, just not creating a lower low needed to create the wave 3.3 down. An up correction was started. This up correction may continue up to the 50 day average, a Fibonacci target around 1970, the median line of the up moving pitchfork, the R1 pivot resistance of the month and the upper side of the trading range. However, indicators show a convergent move with higher bottoms. This should confirm a continuation of the move down once the up correction is finished.
Sylvain Vervoort http://stocata.org/