Last week I wrote: "Closing the week higher with a gap on Wednesday but, starting a reaction on Thursday after reaching a 161.8% Fibonacci target and, the resistance of the R1 pivot of the current month. Price is still at the upper side of the volatility channel and the BBS band. The indicators turned down. Price is far away from the averages. I expect the gap to be closed the coming week and possibly a further reaction down towards the PP pivot of the month. Please read my comments on the weekly chart and monthly chart for more comments regarding the longer term view."
It was some time ago that we closed a week with a lower index. The bearish harami pattern at the top is now confirmed with a move down, reaching the low side of the BBS band, creating a small up reaction already. I expect there will be some more up reaction but, I expect a further down move after that. On the other hand I still cannot exclude a new higher top. The hidden divergence between the index with higher bottoms and the indicators with lower bottoms, confirm a correction, but may also push price above the last top. For the coming week(s) I expect rather a continuation of the correction move towards the PP pivot level of the month. Please read my comments on the weekly chart and monthly chart for more comments regarding the longer term view.
Sylvain Vervoort http://stocata.org/