Last week I wrote:
"Hard to believe, but still no further down move the past week. Tuesday it looked like the move down would continue, but from Wednesday it was all up again closing the week a fraction below the last top of wave 3.13. For now I am at least expecting a short term downward reaction. Again it may be a long term reaction after the double top that we will have if we start a down reaction now. However, since we are still moving up, a new top wave 3.14 is possible. Looking at the weekly chart, the index is making a rounding top pattern. If that is confirmed, we should expect a rather flat move the coming weeks.".
No reaction, no flat move, the only correct remark last week was: "... since we are still moving up, a new top wave 3.14 is possible". The index broke the R1 pivot resistance and moved up very close to the 1926 historical Fibonacci target. It looks like the index will continue the move up towards the next target around 1950. This is the upper side of the up moving pitchfork channel, the R2 pivot resistance of may and a measured move (the height of wave 3.13) target. To early to say, but the bulls may even push the index up to a magical 2000 level the coming weeks.
Sylvain Vervoort http://stocata.org/