Last week I wrote: "A new higher top, to celebrate the start of 2017? On this daily chart the index reaches the R1 pivot resistance for the Month of January. A bull-trap or a further continuation of the up move? I still expect a down reaction, only hard to see if it will happen the coming week. It looks like the index and the SRSI indicator will form a negative divergence, probably the coming week. But again, no guarantee! My best guess is a move down toward 2200 the coming weeks. However, if the index is not turning down the coming week, be prepared for a further move up. You should read my comments on the weekly chart and monthly chart for the longer term view."
Very limited moves the past week and closing only a few points lower. The index remains at the Fibonacci target, fighting the resistance of the R1 pivot of the month. The index is also at the upper side of the BBS band and the volatility channel. There may be a double top, but it has to be confirmed. It looks like there is a negative divergence coming up with a higher index top and a lower indicator top. We are more or less at the same point as last week. I am waiting for a first correction toward the 2200 level. You should read my comments on the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/