Last week I wrote:
The pressure down beginning of the week, moved as expected the index lower to the S2 pivot support of the month. And from that point, as expected an up move was started. Rather fast and large, coming very close to the previous high. If this is the trading range, there are about 100 points or some 5% tradable. I cannot exclude the long term top projection at 2114, since we are really very close to this target. Because even small volume may move the market considerably this close to the year-end.
The index is making a new top wave 3.20. That makes an unbelievable twenty higher tops in a row! We are reaching the R1 pivot resistance of the month. There is a good chance we will close the year reaching the long term target at 2114, moving to the top of the volatility channel and the R2 pivot resistance of the month. I believe there is a possibility that this top will be reached creating a negative divergence between the index and the SVESRSI indicator. That would be an important sign for a down reversal, at least for a larger correction.
Good health and all the best for 2015!
If you have doubt about BBS, have you noticed that the BBS Band Break System used on the weekly chart, took a long trade August 17 2012 at 1418.16 and with a closing at 2088.77 on December 26, 2014, there was a profit of 670.61 or 47%.
Sylvain Vervoort http://stocata.org/