A week ago I wrote: "The 1910 first target I mentioned last week was reached and the index closes the week at 1917. Most probably there will be a further up correction creating an extended wave 2 (E2) up to a level of 2000. This is a price resistance, the upper side of the volatility band, the 100 day average active resistance and close to the 200 day average resistance. This would then be the end of a longer term Elliot wave 4 correction, followed by a continuation of the long term down move, to finish the first long term impulse wave down (Elliott wave 5). As always there is an alternative, resuming the long term down move already now. I believe there is only a very small chance that this will happen."
Last week I mentioned: "As always there is an alternative, resuming the long term down move already now. I believe there is only a very small chance that this will happen." And yes this did not happen. Rather as expected the up correction continued further creating the longer term Elliott correction wave 4. We have already an extended correction wave E2 now. I have to repeat what I wrote last week: most probably there will be a further correction up to a level of 2000. This is a price resistance, the upper side of the volatility band and the 100 day average active resistance. This would end the longer term Elliot wave 4 upward retracement, followed by a continuation of the long term down move, to finish the first long term impulse wave down (Elliott wave 5). We must keep in mind that the down continuation may come faster than we think.
Sylvain Vervoort http://stocata.org/