Last week I wrote:
Only a small retracement on Monday, followed by a move down to the low side of the up moving pitchfork, a reaction back to the PP pivot point of the month and once more down to the low side of the pitchfork and the 100 day average. There is a hidden divergence between the index and the stochastic RSI. Basically this means that we should have some retracement, followed by a further move down. This move down is also close to being confirmed in the weekly chart. It is still early to say that a longer term reaction is started, but there are signs already. Next week probably some more retracement, but a further down move after that.
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.
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 https://stocata.org/