Last week I wrote:
The some more retracement we talked about last week, is larger than expected. We are at a point where the chance for breaking the previous top is more realistic than a turn down. The hidden divergence with a lower bottom in the stochastic RSI and the higher bottom in the index will most probably push the index above the previous top wave 3.21. This may be the continuation of the long term up move. But if on the other hand we are near a long term top, we should see a negative divergence with a higher top in the index and a lower top in the stochastic RSI.
The previous top is not broken. We still have a convergent move between the stochastic RSI and the index. That means we should expect a further normal short term correction creating a wave 3.1 down to the level of the S1 pivot support of the month, the 200 day average and the low side of the volatility channel around 2015. The expert turned black.
Stocks & Commodities magazine published the READERS' CHOICE AWARDS for 2015. Two FAVORITE ARTICLE semi-finalist awards are for my articles "Creating A Trading Strategy, Part 3" and "Exploring Charting Techniques, Part 1". First Runner-Up is "Swing Trading With Sylvain Vervoort" an interview from Jayanthi Gopalakrishnan. Thanks to all for voting.
Sylvain Vervoort http://stocata.org/