A week ago I wrote: "As expected, the index remains in a small trading range, bouncing between previous index low levels and the 50 day moving average on the upper side and inside the BBS channel. I do not expect big changes the coming weeks. Rather a flat move towards the 100 day average while the US Presidential elections are some 4 weeks away. Long term I still expect a continuation of the down move. Read my comments with the weekly chart and monthly chart for the longer term view."
It looks like the index broke the shorter term trading range reaching the 61.8% Fibonacci retrace level on Thursday with the low price of the day. At this level there is price support, support from the low side of the volatility channel, the low side of the up moving pitchfork and the 61.8% Fibonacci retrace level. This support may create some up pullback the coming week. There is room for a further move down, so medium term, we must expect a continuation of the move down. Read my comments with the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/