Last week I wrote:
"The index made the expected move towards the support of the 50 day moving average. This was also a 161.8% Fibonacci target, the 50% retracement of the wave 3.4 up and the low side of the up moving pitchfork. From that point an up reaction was started on Thursday and Friday. I do expect this last wave 2 correction to remain a valid wave 2, probably next turning down against the upper side of the internal BBS band and the median line of the up moving pitchfork. ".
Monday brought the index close to the upper side of the internal BBS band, and as expected the index turned down reaching a low on Wednesday finding support on the 50 day average. Thursday brought a large correction back to the Pivot point PP and previous support, now becoming resistance. But Friday the down move was back closing the week lower. I assume there will be another attack to break the 50 day average support the coming week and the low side of the internal BBS band, as a result creating a wave 3.2 down. We have an open short position. The expert is still green. I believe we must expect a continuation of the down move, so I keep the open short position.
Sylvain Vervoort https://stocata.org/