Last week I wrote:
Are we setting the trading range? We have a pullback correction wave 2 down, finding active support on the 50 day moving average. There is some more pressure down for a move to the S2 support level of the month and probably to the 200 day average. Not falling below the S2 level I would expect a new up move to create a trading range. Because we are close to the year-end there may be an effort to keep the index above 2000 and start a trading range from the current low.
The pressure down beginning of the week, moved as expected the index lower to the S2 pivot support of the month. And from that point, as expected an up move was started. Rather fast and large, coming very close to the previous high. If this is the trading range, there are about 100 points or some 5% tradable. I cannot exclude the long term top projection at 2114, since we are really very close to this target. Because even small volume may move the market considerably this close to the year-end.
If you have doubt about BBS, have you noticed that the BBS Band Break System used on the weekly chart, took a long trade August 17 2012 at 1418.16 and with a closing at 2010.4 on November 21, 2014, there was a profit of 645.34 or 45.5%.
Sylvain Vervoort http://stocata.org/