Last week I wrote: "Sorry I could not make comments last week. Two weeks ago I expected the gap around 2460 to be filled and that was the case. On the other hand I saw room for a further move up. This happened the past week with a gap and large move on Monday (9/11) and another gap on Tuesday. Price is now at the R1 pivot resistance, the 161.8% Fibonacci target and the upper side of the volatility channel while, the index is far away from the averages. Note the negative divergences between price with higher tops and the lower tops in the stochastic RSI indicator. I expect a pullback for closing the recent gaps, possibly after some small further up move. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view."
The index went a few points up Monday till Wednesday but, back down Thursday and Friday, closing just a few points higher compared to the week before. The index now reached the 161.8% Fibonacci target projected over the last wave down of the last correction wave. The candle chart is showing a doji, hanging man and evening star pattern, all negative signs. The stochastic oscillator is showing a downward move compared to the upward move in price over the last few days, a negative divergence. The index is back at the R1 pivot resistance , the 161.8% Fibonacci resistance, the upper side of the volatility channel, indicators are topping and price is far away from all averages. Furthermore there are two gaps I expect to be filled. Logically we should expect a reversal with a further downward move the coming week(s). First targets are filling the gaps. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view.
Sylvain Vervoort http://stocata.org/