Last week I wrote: "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."
We got a nice copy of the week before, be it with one less trading day. Very small moves and again a slightly lower closing of the week. The index remains at the Fibonacci target, trying to get past the R1 pivot of the month. There is no clear sign where the index is going to be next week. My best guess is that we are at a long term top, even if the index would close a bit higher, long term we should expect at least a larger correction. I prefer to be short, be it with a small stop just above the R1 pivot resistance. You should read my comments on the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/