A week ago I wrote: "Again almost no move the past week. The negative divergence under construction I mentioned last week is a fact. However, there is not yet a confirmation for the start of the move down. The index is still at exactly the 161.8% historical Fibonacci target measured from the last down correction. It is at the upper side of the BBS and volatility channel. If you have open long positions it might be a good idea to close them now. My opinion the upper side is very limited for the moment and starting a correction may possibly be a long term reaction with a larger move down. Read my comments with the weekly chart and monthly chart for the longer term view."
Before we can say that the downtrend is started, we need the index at least below the last small bottom towards 2140. But the past week the index may have giving a first push down. Friday we saw an attempt to push the index above the last top, but that did not happen. Instead the index fell below a three weeks low. I do expect a further move down towards the low side of the volatility channel, the 50 day average, the PP pivot level of the month and the median line of the up moving pitchfork, all around 2140. Read my comments with the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/