Last week I wrote: "In my last comment I wrote" There may be a small further move up to complete the wave e of the triangle formation. That should be the end of the triangle correction followed by a continuation of the down move." The index moved up to the R1 pivot resistance. It looks like we are still missing a small move up to complete the b-correction wave. Best estimate is a move up to 2750. That will close the first gap that appeared near the start of the a-wave. Moving down from that level, there is a gap to fill from last week Thursday. First target for this move is the S1 pivot support target followed by, the S2 pivot support target. The S2 target is confirmed by a 161.8% Fibonacci projection over the first part of the b-wave. Another confirmation is given projecting the size of the A-wave from the top of the B-wave, the red vertical line. Read my updated comments here for the weekly chart and monthly chart for more information regarding the longer term view."
We got as expected the small further up move the past week. The small gap at the start of the a correction wave is not closed yet. Maybe this will still happen the coming week. If this gap is not closed it is not a good sign and it may take a long time before being closed in the future. The first down target is the 200-day average and the low side of the Bollinger band. The target for the C-wave correction is around 2450, completing a C-wave with the same size as the A-wave, also the 161.8% Fibonacci target over the current top and the start of the b-wave. Read my updated comments here for the weekly chart and monthly chart for more information regarding the longer term view.
Sylvain Vervoort https://stocata.org/