A week ago I wrote: "Last week I mentioned: " At this level, there is price support, support from the low side of the volatility channel, the low side of the up moving pitchfork and the 61.8% Fibonacci retrace level. This support may create some up retrace the coming week." That is what happened and the week is closing higher. The index finds now resistance from previous price levels, the 76.4% Fibonacci retrace, and the 100-day average. This resistance is probably enough to stop the up correction, and we may expect a further move down, in the first instance to the last low around 2115. Read my comments on the weekly chart and monthly chart for the longer term view."
Last week I mentioned: " The index finds now resistance from previous price levels, the 76.4% Fibonacci retrace, and the 100-day average. This resistance is probably enough to stop the up correction, and we may expect a further move down, in the first instance to the last low around 2115." The index came close to this level on Friday, but could not break the support at this level. The index may stay within the smaller trading range the coming week, waiting for the Presidential Elections. From a purely technical analysis point of view, I rather expect the index to break the support moving further down. There is certainly much resistance for a move up. Read my comments on the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/