Last week I wrote:
"Last week I said: "It looks like the indicators were right favoring a further up move. Already Monday the possible hanging man candlestick reversal was not confirmed showing a further up move towards the R1 pivot resistance of the month. Since that was the only resistance there, it was too weak to stop that move up. And believe it or not we have once more a higher top with wave 3.17. However, we are closing the week below the previous top. We also see a step down candle pattern. And we may have a nice double top reversal pattern. So, at least I expect some downward reaction now. One thing is that the move is still convergent between price and indicators, that may be an indication that the final top has not been reached yet."
No double top, no downward reaction, but closing a bit higher in a week with limited moves. We are now closing above the 2000 level with 2003.37. With 2003 we reach a Fibonacci target level. Basically I would now expect some pullback to create a reaction wave 2, possibly after first a limited continuation of the up move (2010?). My expected minimum retracement level is 1970. This may take more than one week.
Have you noticed that the BBS Band Break System used on the weekly chart took a long trade August 17 2012 at 1418.16 and that we are now closing at 2003.37 on August 29, 2014. A profit of 585.21 or 41.2%.
Sylvain Vervoort http://stocata.org/