A week ago I wrote: "Last week I mentioned: "From a purely technical analysis point of view, I rather expect the index to break the support moving further down. There is certainly much resistance for a move up." Moreover, yes, as expected, all days of the week were negative, closing the week at 2085. The index now reaches the S2 pivot support of the month, the low side of the volatility channel, the low side of a new down moving pitchfork and a Fibonacci target. In normal circumstances, I would expect some retracement now. However, with the Presidential Elections on Tuesday, it is very unpredictable. There is a good chance that the move down continues when we look at the monthly and weekly chart. I hope you are out of the market as I suggested already a few times, now simply watching what is going to happen. We must expect a very volatile market. Read my comments on the weekly chart and monthly chart for the longer term view."
As I wrote last week: "In normal circumstances, I would expect some retracement now. However, with the Presidential Elections on Tuesday, it is very unpredictable. We must expect a very volatile market." What would happen in normal circumstances came with some exaggerated retracement after a political historical fact, probably nobody was expecting. The same with the volatile market, it only lasted a few hours. I think next week there will be a pullback down, probably to the level of the PP pivot of the month. Looking more than one week ahead is my opinion not possible for the moment. Nothing is excluded for the near future, even a new long term top. I suggest to trade only short term for now. Read my comments on the weekly chart and monthly chart for my longer term view.
Sylvain Vervoort http://stocata.org/