Last week I wrote:
"Last week I mentioned "Monday and Tuesday little movement, a consolidation with slightly higher prices. From Wednesday, the start to a new higher high with a new top wave 3.15, close to the target of 1966 that I mentioned last week. A higher top fifteen times in a row, that is extreme. We are now reaching the upper side of the up moving pitchfork, the R2 pivot resistance of the month, close to the upper side of the volatility channel and far away from all averages. I expect this long term up move to end any time. However, before that the index most probably will reach 2000 or even 2030, the next long term Fibonacci target.".
A slightly higher top on Tuesday touching the R2 pivot level of the month, but at the same time the start of a reaction down back to the R1 pivot level. The rest of the week was an up move to correct the correction, closing the week a fraction lower. We have a negative divergence in the indicators comparing the lower tops of the indicators with the higher tops of the index. Basically a good reversal sign. However, the bigger down candle on Tuesday is not confirmed yet as a reversal. Like I mentioned last week: a higher top fifteen times in a row, that is extreme. We are far away from all averages and reached once more the upper side of the pitchfork channel and the upper side of the volatility channel. Turning down now may come as a surprise this close to the 2000 level. Make sure you are prepared ...
Sylvain Vervoort http://stocata.org/