Last week I wrote: The gaps at the start of wave A are still not closed. This is a bad sign because, if it is not happening now it may take a long time in the future pointing in the direction of a long term downtrend reaction. The index moved higher with a gap. You should expect this gap to be closed in a couple of weeks. It looks like there is a negative divergence building between the index and the stochastic RSI indicator. A confirmation of the lower top in the SRSI will force a down move. For now I expect the main trend to remain a downward move for the medium and long term. Read my updated comments here for the weekly chart and monthly chart for more information regarding the longer term view."
There is a nice negative divergence between the index with a higher top and the stochastic RSI with a lower top. Meaning we can expert a continuation of the medium term down move. This looks confirmed with the end of wave C, also the end of higher order wave (C) and longer term wave [B]. Furthermore with an index current high around 2820 we are very close to the 161.8% Fibonacci target projected over the end of wave [A] and the end of wave A. Watch your long positions because if this is correct you should expect a move down in first instance to 2480. That is more then 300 points down or more than 10%. This target is given assuming a more or less equal size for the wave [A] and the expected wave [C] from the top reference of wave [B]. Read my updated comments here for the weekly chart and monthly chart for more information regarding the longer term view.
Sylvain Vervoort https://stocata.org/