Last week I wrote:
"Last week I wrote: "We should now expect a further move down to the S1 pivot support, the median line of the up moving pitchfork and the 50 day simple moving average. This will possibly break the level of the previous wave 2 bottom, moving to the 100 day average and creating a new wave 1 down". This is exactly what happened. With the index now reaching the S2 pivot support. There is room for a further down move towards the low side of the up moving pitchfork, the S3 pivot support and the 200 day average. It may take more than one week to get there. A correction wave 2 will most probably create a pullback for the new wave 1 down before reaching that point. Very important now is to see if an up reaction wave 2 will make a lower top than wave 3.12, that would be a very important sign of a possible longer term trend reversal".
In this shorter 4 day trading week we got as expected a correction wave 2 up, that is not finished. The up pullback is now finding resistance at the level of the monthly PP pivot level, the upper side of the BBS band and price resistance around 1870. The spinning top on the candle pattern Thursday may be the first sign that wave 2 is topping. If the index turns back down it is forming a head and shoulder pattern. The coming week may be very important for the future. Making once more another top? I believe turning down has a good chance.
Sylvain Vervoort http://stocata.org/