A week ago I wrote: "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. Read my comments with the weekly chart and monthly chart for the longer term view."
As expected, the index remains in a small trading range, boucing 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.
Sylvain Vervoort http://stocata.org/