A week ago I wrote: "Two weeks ago wrote: "We are now at the point where there is sufficient resistance and we should expect the start of a correction down, probably after a small further move up (2020-2040). I think this statement is still valid." The up move the second part of the week brought the index up to 2050. We are now at the upper side of the volatility band reaching a Fibonacci target and the R2 pivot resistance of the month. If a down move starts the coming week, we will see a negative divergence between the index and the Stochastic RSI. You never know, but I assume at least a correction wave down will be started."
The 4-day trading week started a fraction higher. Tuesday we saw a doji candle, basically confirmed with a black down candle. The index moved down and found support on Thursday at the level of the 200 daily average and the low side of the BBS band. We should expect in first instance a further move down to the level of the R1 pivot of the month, the 100-day average around 2000 and the low side of the up moving pitchfork. The target after that is around 1950.
Sylvain Vervoort http://stocata.org/