Two weeks ago I wrote: "Drawing a medium term Fibonacci target, the index is close to the 2805 target I mentioned last week. Indicators are topping and we are close to this 423.6% Fibonacci target. Short term I expect some pullback, possibly after reaching the short term Fibonacci target. Long term it looks like the 3000 level is now within reach. I commented this in the weekly and monthly chart. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view."
he index broke the 423.6% Fibonacci target from 2 weeks ago. Now even the R3 Pivot level of the current Month is broken. However, price is far away from the lower side of the volatility channel and from all averages. The Stochastic RSI may be making a negative divergence with the index. Normally this means that a pullback is not far away. As mentioned with the weekly chart I expect a reaction around the 3000 level. On the other hand I expect a continuation of the move after a correction. The longer term Fibonacci target is around 3200. Maybe you should try a long trade after the expected reaction for a ride to 3200. Read my comments on the weekly chart and monthly chart for more information regarding the longer term view. The short term SVEPRExp Price Range expert system is green for a long position. Black means a short position and red is a warning for a possible short.
Sylvain Vervoort http:/stocata.org/