Last week I wrote: "As expected the index made some more up move the past week. I am convinced that at least a short term reaction is coming up the coming week(s). I expect the gap at the beginning of the last move up to be filled. There is an evening star reversal pattern visible. I assume this will be confirmed the coming week. First down targets are at 2430 and 2400. These targets are given by pivot levels of the current Month, the low side of the longer term up moving pitchfork channel and the 50- and 100-day moving average furthermore, indicators are topping. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view."
Last week I mentioned: "I expect the gap at the beginning of the last move up to be filled." The last gaps were filled with a low price on Thursday while, making a new higher high the same day. We now have an exceptional last engulfing bearish pattern at the top. If this is confirmed the coming week it may be the start of a downward reaction phase. It looks like we have a short term negative divergence with, higher tops in the index and lower tops in the indicators. On the other hand there is a Fibonacci target at 2534 that we should not exclude. The first down target is 2430 closing the gap at the beginning of the last up move. Perhaps Monday it will already be clear which way we are going the coming week. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view.
Sylvain Vervoort https://stocata.org/