Last week I wrote: "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."
Wednesday there was a gap up breaking the resistance of the R1 pivot level of the month, creating another higher high. I keep believing we are at a long term top. Price is near the top of the volatility channel. The last tops and bottoms are a convergent move between the index and the indicators. This is mostly the case when you are looking at a correction move, which is not the case here, or is it perhaps that exaggerated? I expect a closure of the gap the coming week. Price is far away from all the averages. You should read my comments on the weekly chart and monthly chart for the longer term view.
Sylvain Vervoort http://stocata.org/