Last week I wrote: "In my last week comment I wrote: "Now we see a divergent move with lower tops in the index and higher tops in the Stochastic RSI. This points in the direction of a further down move below the previous low. The second zigzag down target for the coming couple of weeks is around 2300. This is the size of the first zigzag down from the top of the past week (the red arrow line down) and the 61.8% Fibonacci retrace of the last wave up." The further down move is confirmed, now reaching a low of 2328.95. The index reaches support from the previous low price, the S1 pivot support of the month and the 50% retrace level over the last up wave. Meaning we should expect some pullback. This will create the second smaller leg of the larger double zigzag down. The target remains as mentioned last week 2300. I assume it will take two more weeks to get there. Please read my comments on the weekly chart and monthly chart for more information regarding the longer term view."
It looks like we are completing a convergent move with lower index tops and a lower Stochastic RSI top. This means that the pullback of the past week is rather a correction and that the down move will continue now. The index reached the resistance of the PP pivot level of the month, the 50-day moving average resistance and previous price support and resistance. Ready to turn down continuing the down move. The first target remains as mentioned already a couple of weeks ago 2300. This is below the last low with the size of the first leg down from the top (red arrow), the 61.8% Fibonacci retrace, the low side of the volatility band and the 100-day moving average. Please read my comments on the weekly chart and monthly chart for more information regarding the longer term view.
Sylvain Vervoort http://stocata.org/