Last week I wrote:
Some reaction down on Monday, but closing the week a bit higher at 2075.37. We are still at a historical Fibonacci target. We can expect a move up to the R1 pivot resistance of this month, the upper side of the volatility band and the long term Fibonacci target at 2114. Unless there would be some very bad news, I expect this to be the top for this year, meaning moving in a tide trading range for the rest of this month.
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.
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/