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