Two weeks ago I wrote: "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."
The last week of 2016 started a reaction down, most probably confirming the doji reversal signal in the weekly chart. The index is falling back to the median line of the up moving pitchfork from the top of the volatility channel. The indicators are moving down. I expect there will be a further down move the coming weeks. First target is around 2200, a price support level, the low side of the volatility channel and back to the averages. You should read my comments on the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/