AEX 348

The 7 trading days since the top brings the AEX right at the previously projected first area of support. See image. While the decline looks straight on this chart (like an impulse) on the intraday chart it is actually choppy. So at this point it is unclear whether this move is the beginning of a larger decline or just a correction in the uptrend. Volume suggests that there hasn’t been any panic yet, so this most likely means that the decline is not over. My guess is that the AEX will bounce around 348, the first (yellow) line which is also the level of some Fibonacci retracements (not shown). The shape and the speed of the bounce up from there will give more clarity if the AEX will attempt 1 more top in August (see earlier posts), or that a new bear market has begun. Good times either way :) For traders that is.

130605 AEX