A week ago I wrote: "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."
Last week, I expected a pullback, but the market closed a bit higher and reached the resistance of the R2 pivot point of the month. This is also a Fibonacci target. I see a convergent move between the index and the SVESRSI indicator. Mostly this means that the last move is a correction and that the price will continue the previous move down. First targets are the R1 (2160) and PP pivot (2140) levels. Personally I am still avoiding longer term long positions. Read my comments on the weekly chart and monthly chart for my longer term view.
Sylvain Vervoort http://stocata.org/