A week ago I wrote: "I am clearly forgetting that we are coming very close to the end of 2016. Usually prices stay high because fund managers want to close the year with a good report. Meaning no down reaction for the moment. Contrary we should expect more higher prices the next couple of weeks. The next closest target for the coming week is a Fibonacci projection around 2272. I do expect a small reaction first. We will probably see higher prices until the end-of-the-year. However, medium term I still expect a larger correction, be careful! You should read my comments on the weekly chart and monthly chart for the longer term view."
Last week I wrote: "The next closest target for the coming week is a Fibonacci projection around 2272." There was a very small reaction on Monday but, Tuesday the index reached the target at 2272. Once this point was reached, a reaction started in first instance to the support of the R1 pivot level of the month. Indicators are turning down and there is a negative divergence between the index and the stochastic RSI. With the doji now in the weekly chart we have one more indication that a down reversal may be started. We have to wait for a confirmation in the weekly chart. First down target is around 2200. Keep in mind that we are only 2 weeks away from the end of 2016. Small market volume may have a large influence on the index. You should read my comments on the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/