Last week I wrote:
The index closes the week a fraction higher, enough to create a new top wave 3.23 with only small moves the whole week. Monday, US markets are closed. Distribution is ongoing with I guess a lower index the coming week, falling back into the trading range. There will be support from the R1 pivot level, the low side of the BBS band, the 50 day average and the PP pivot level. I believe there is a good chance that this distribution phase will end with a long term move down. Looking at action/reaction, I expect a first reaction within a couple of weeks.
Last week I commented: "Distribution is ongoing with I guess a lower index the coming week, falling back into the trading range". The index went down to support from the level of the low side of the BBS band and the 50 day average. The index moves towards the median line of the longer term downward pitchfork (red) and we can see a new shorter term pitchfork (orange) showing a faster down move. For the coming week I expect a further move down towards the levels of the longer term median line of the down moving pitchfork possibly towards the low side of the volatility band and the low side of the trading range.
Sylvain Vervoort: http://stocata.org/