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Please look at all charts, monthly, weekly and daily before making your own conclusion. You can find HERE a description of the chart template used.
The used chart template is explained HERE.
Last week I wrote: "And as expected, the low price of the week reached the low side of the volatility channel. Correction wave 2 is no longer a valid wave 2 and becomes a new wave 1 down, normally the start of a medium term 123 wave down. After reaching this new low, we have an up pullback to the level of the 50 week average. After the pullback, we must expect a continuation of the down move, first to the 61.8% Fibonacci retracement around 1760. Medium term targets are 1680, 1600 and 1500. "
It looks like it is all sunshine again. The last move down was large in a very short time period. Also the retracement is large in a short time period. Does that mean we are going for another top? You never know, but for now we still have a valid wave 2 correction. There is convergence in price and indicators, so basically we should not expect a swing reversal up, even it looks like that now. Technically we should expect a reversal down for a continuation of the downtrend. On the other hand the bulls are back in control and may keep the index up until the end of the year.
If you have doubt about BBS, 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 with a closing at 2010.4 on September 19, 2014, there was a profit of 592.24 or 41.7%.
The longer term SVEPRExp expert system is black. Green means a long position and black a short position for the long term on this weekly chart. You can find more information about SVEPRExp HERE and HERE!
For FOREX traders; here I keep updated FOREX EUR/USD charts.
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The index moved back up to the low side of the pitchfork.
We are retracing the last move down.
There is support at 1760-1680-1600-1500.
Fast Stochastic RSI indicator:
Slow Stochastic RSI indicator:
SVEPRExp expert system:
The long term investor on a weekly basis has an open short position.
NinjaTrader® charts courtesy of NINJATRADER®