Last week I wrote:
The index still moves within the symmetrical triangle correction phase making a lower top the past week, bouncing against the R1 pivot level of the month, and a larger move down on Friday bringing the index back to the PP pivot support level. This last lower top has a hidden divergence with a higher top in the stochastic RSI indicator. This is basically an indication for a further move down to below the last wave 1 (3>2>1). We can also draw a new fast moving down pitchfork. The S1 pivot support around 2030 would be the first down target. On the other hand we have to keep in mind that a triangle is a continuation pattern. Here for a continuation of the up move. So, once more hard to decide what can be expected the coming week. If I have to make a choice, I go for a continuation of the down move the coming week.
Like I mentioned last week: "On the other hand we have to keep in mind that a triangle is a continuation pattern. Here for a continuation of the up move. So, once more hard to decide what can be expected the coming week". The triangle pattern wins the game with a new higher high wave 3.22. The convergent move with higher tops and bottoms in both the index and the Stochastic RSI is probably a good sign for a further move up the coming week(s) and possibly a sign for a limited reaction only. Price is moving once more back inside the up moving pitchfork and will find support on the level of previous high levels and the R1 pivot resistance, now giving support.
Sylvain Vervoort http://stocata.org/