"Last week I wrote: "The index not only moved slightly higher as we were expecting, but much higher, almost touching again the median line of the up moving pitchfork and even passing the resistance of the R1 monthly pivot. Monday is presidents day. We will have to wait for Tuesday to find out what is coming next. Not reaching the median line of the pitchfork would mean a downturn past the last low of the wave 1. Reaching the median line on the other hand will most probably bring the index above the last high of wave 3.9, creating a wave 3.10. This last scenario has technically the better chance, but be careful, because the long term reaction down will start (continue) when it is least expected. ".
A consolidation and not yet a new high wave 3.10 while reaching the median line of the previous pitchfork. I created a new last upward pitchfork. We may have a further move up towards the upper side of this pitchfork for a new high wave 3.10. But for now, I would say there is an equal opportunity that correction wave 2 is finished and that a wave 3 down will be started. In that case I expect a move down towards the low side of the BBS band, the median line of the up moving pitchfork and the support of the 50 day average.
Sylvain Vervoort http://stocata.org/