A week ago I wrote: "As expected price moved up even a bit above the pivot support S1, here resistance, up to the 100 day average and the middle line of the Bollinger Bands(R). With lower lows both in the index and the SRSI indicator we have a convergent move. Basically this means that price is making a correction. If this is the case we are probably finishing a B-wave and now expecting the C-Wave down. A and C waves are generally about the same size. If this will be the case here, the index can go down to 2400 to finish the C-wave. Important: Read the comment given with the weekly chart! Read my comments here on the weekly chart and monthly chart for more information regarding the longer term view."
Closing the week a fraction higher. Last week I mentioned: "With lower lows both in the index and the SRSI indicator we have a convergent move. Basically this means that price is making a correction. If this is the case we are probably finishing a B-wave and now expecting the C-Wave down. A and C waves are generally about the same size. If this will be the case here, the index can go down to 2400 to finish the C-wave" But, perhaps I overlooked the other possibility meaning, the index is not making a first ABC correction but, a 5-impulse wave down for a longer term wave A correction. If that is the case the index now makes the wave 2 correction. Since a wave 2 correction can retrace up to 100% of wave 1, the index may go further up to the last top. That will be confusing because you will be thinking that the up move is continuing. If the index moves further up now, the chance that we are making a correction wave 2 becomes more lightly. Looking at the Elliott count in the weekly chart, even making a higher top is not impossible. All rather confusing for the moment. A close follow up is needed! Read my comments here on the weekly chart and monthly chart for more information regarding the longer term view."
Sylvain Vervoort http://stocatat.org/