Last week I wrote: "Last week I mentioned: "The index will probably start the coming week with some limited higher prices for reaching the price resistance just above 2050, the 100 and possibly the 200 day average and the upper side of the volatility channel.". The week started with a small down reaction, but moved up Thursday and Friday a bit above the expected level. If there will be a down reaction next week, watch the index turning from the top of an up moving wedge pattern. With this pattern, we must expect the index to break the lower side of the pattern. However, the wave count inside the wedge pattern may not yet be complete. There may be one more down and up reaction, Elliott wave 4 and 5 inside this pattern, before this wedge pattern ends. Anyway, we first should expect a down reaction the coming week towards the low side of the wedge pattern.".
Only a small move the past week, bouncing against the resistance of the upper side of the wedge pattern, the R2 pivot resistance of the month and the upper side of the volatility channel. For the coming week we should expect a down correction toward the low side of the BBS channel, the low side of the wedge pattern, the 100 average, previous price level support and Fibonacci level support. From that point we then should have the last move up inside the wedge pattern, with a new higher high index, possibly just above the 2130 Fibonacci target.
Sylvain Vervoort http://stocata.org/