Last week I wrote: "It was some time ago that we closed a week with a lower index. The bearish harami pattern at the top is now confirmed with a move down, reaching the low side of the BBS band, creating a small up reaction already. I expect there will be some more up reaction but, I expect a further down move after that. On the other hand I still cannot exclude a new higher top. The hidden divergence between the index with higher bottoms and the indicators with lower bottoms, confirm a correction, but may also push price above the last top. For the coming week(s) I expect rather a continuation of the correction move towards the PP pivot level of the month. Please read my comments on the weekly chart and monthly chart for more comments regarding the longer term view."
As expected a further short term up reaction to the upper side of the BBS band. This is probably the end of this reaction and we may expect a further down move the coming week(s). The move down has a number of targets; the low side of the BBS band and at the same level previous price support, the PP pivot level of the month, and also the 38.2% Fibonacci retrace over the last wave up. At that point we can expect another correction before moving down to the next target, the 50% retrace and at the same level the low side of the volatility band and the 50-day average. Please read my comments on the weekly chart and monthly chart for more comments regarding the longer term view.
Sylvain Vervoort http://stocata.org/