A few weeks ago I wrote: "About 3 weeks ago we were looking for the price gap to be closed or not. It was closed the week after. I tried another wave count, impulse waves instead of correction waves. With that count we were at the top of a wave (3) and had to expect a higher wave (5). Arrived at this new wave five top, we have a first reaction down. I assume there will be a smaller wave b correction coming the next week.
One week ago the index reached a higher top, possibly the top of a longer term wave . The past week we see a pullback closing the gap in the last up move. Price moved close, up to the R1 pivot resistance. Note the negative divergence with a higher top in price but, a lower top in the Stochastic RSI indicator. I assume price will move further down the coming week. However, we have to keep in mind that the year-end is coming close and a magical 3000 level is not far away. The reaction may still be limited for now. Read my updated comments here for the weekly chartand monthly chart for more information regarding the longer term view.
Sylvain Vervoort https://stocata.org/