Last week I wrote:
"It looks like as I mentioned last week "Until Thursday it looked like the week would be closed with a higher price. But, my expectation of a further move down was confirmed on Friday, closing the week lower at the level of the 61.8% Fibonacci retracement with a large black candle. The index is now making a first wave 3.1 down. There may be some up reaction, but short term I do expect a further move down towards the 50 day moving average and the low side of the BBS volatility channel. The expert turned black and indicators are moving down. We still have our open short position".
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. The total closed profit trading the index is 128.3% from the start in March 2009. We have an open short position. The expert went from black to green. I believe we must expect a further move down, so I keep the open short position.
Sylvain Vervoort https://stocata.org/