Last week I wrote:
As expected, there was a further correction move up to the upper side of the BBS channel, with a first reaction down on Friday. We have a retracement for wave 3.1 between 38.2% and 23.6%. This is a large retracement. More than this there is a good chance that a new top will be created. For a further down move, there better will be no more up move the coming week. If the index moves down the coming week, we should expect a further move down towards the 100 and 200 day moving average around 1960 and next the S2 pivot level and the 161.8% Fibonacci target at 1920 the coming weeks.
Last week I wrote: "For a further down move, there better will be no more up move the coming week". It looks this was understood by the index and confirmed with more than 50 points down. Price already reached the median line of a new fast down moving pitchfork. Price is at a support level and some small up reaction is possible, but I expect a further down move with targets at 1960 and 1925. Note that there is a negative divergence between the index and the indicators.
Sylvain Vervoort http://stocata.org/