Last week I wrote: "A bit as expected, closing the week higher, reaching the last current Fibonacci target and the upper side of the up moving pitchfork. As I mentioned last week, we lost the negative divergence and we now have a convergent move between the SRSI indicator and the index. Basically this means we should now expect a short term reaction for the last wave up and not yet a longer term reaction. I estimate that a reaction of some 60 points can be expected, maybe after a further small move up. Please read my comments on the weekly chart and monthly chart for more comments and the longer term view."
As expected, more or less some 15 points up move the past week. A longer term Fibonacci projection now reaches exactly the 261.8% target. With the convergent move between the index and the stochastic RSI, we must expect in the first place a (smaller) correction related to the last wave up. This reaction will be in the order of 60 index points. The index is now at the upper side of the pitchfork channel and the stochastic RSI is topping. The index is also far away from the averages. Possibly the reaction starts the coming week. Please read my comments on the weekly chart and monthly chart for more comments and the longer term view.
Sylvain Vervoort http://stocata.org/