Last week I wrote: "There was a gap down on Monday and a gap up on Friday. The result, the week is closing just a fraction higher. Price is at the top of the BBS band and reaches a Fibonacci target. Additionally we should expect resistance from the R1 pivot of the month. What to expect next week? Looking at the monthly and weekly chart I would say probably the start of the move down however, on this daily chart this is not very clear. We have to follow up. Please read my comments on the weekly chart and monthly chart for a longer term view."
Closing the week some one percent higher. If the index turns down now, we have another negative divergence between the index with higher tops and the Stochastic RSI indicator with lower tops. On the other hand there seems to be room for at least another 20 points up move. If that happens the negative divergence will disappear. I see different Fibonacci targets, some point to the current level and some go about 20 points higher. It looks like we have to follow up, waiting for a long term reversal. Please read my comments on the weekly chart and monthly chart for more comments and the longer term view.
Sylvain Vervoort http://stocata.org/