Last week I wrote: "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."
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.
Sylvain Vervoort http://stocata.org/