A week ago I wrote: "Last week, I expected a pullback, but the market closed a bit higher and reached the resistance of the R2 pivot point of the month. This is also a Fibonacci target. I see a convergent move between the index and the SVESRSI indicator. Mostly this means that the last move is a correction and that the price will continue the previous move down. First targets are the R1 (2160) and PP pivot (2140) levels. Personally I am still avoiding longer term long positions. Read my comments on the weekly chart and monthly chart for my longer term view."
We have a new long term top with wave 3.14 in the weekly chart. In the daily chart we reach the upper side of the volatility channel. We should expect some retracement. However, we can expect a higher top after a short term correction in the daily chart. The next up target is around 2350. A correction now will probably move towards the 50 and 100 average and price support around 2155. On the other hand we are close to long term targets so, we must be prepared for a long term correction. Read my comments on the weekly chart and monthly chart for my longer term view.
Sylvain Vervoort http://stocata.org/