Last week I wrote:
"Last week I mentioned: "Even thinking that a new top was not realistic, the new top wave 3.6 was reached. If you are following my weekly comments longer time already, and going back to the end of July, you will notice that I started mentioning 1730 as a top target already that moment in time. Again a confirmation that price moves mostly take much more time than you could imagine. The index turned at the upper side of the BBS volatility channel and close to the R2 monthly pivot resistance. Have we now reached the longer term top and must we expect a longer term correction? Not impossible! For the coming week I do expect a further correction towards the R1 and 50 day average support".
Last week I concluded: For the coming week I do expect a further correction towards the R1 pivot and 50 day average support. The low and closing of the week ended very close to this R1 pivot support, the 50 day simple average and the low side of the up moving pitchfork. Normally there will be some retracement now, but for the coming weeks I rather expect a further move down to the 100 day average and the low side of the BBS volatility band around 1650. At that level we must expect some retracement.
Sylvain Vervoort http://stocata.org/