A week ago I wrote: "The last support, the 100 day average and the S2 pivot support of the previous week was not broken. Contrary, Wednesday and Thursday there were higher index levels. A further move up was stopped by a previous price gap, the 50 day average, the upper side of the BBS band and the PP pivot level of the month. Friday there was a turn down, covering a previous price gap. If the index will continue the medium and long term down move, next week will have to show lower prices. Targets are 2150, 2120 and 2100. Read my comments with the weekly chart and monthly chart for the longer term view."
The first down target 2150, I mentioned last week, was reached on Monday. Tuesday and Wednesday closed the Monday gap. Thursday there was another move down once more reaching the 2150 target, but Friday there as another move up to the upper side of the small trading range, closing the week around the same level as the week before. The index remains close to the highest top of August. With the US Presidential elections November 8, we should not exclude a new higher high. However as I mentioned before I do not expect a continuation of the long term up move. Contrary I rather expect the long term down correction to be continued, but possibly it will only start after the elections. The coming week will probably remain within the short term trading range. Downward short term targets are at 2130, 2120 and 2095.
Sylvain Vervoort http://stocata.org/