Since the beginning of the year the index gained more than 4.5% yet last week rose more than 3.0% and continues in a bullish phase since mid-July.
Last week the index rallied with a wide range and closed near the high of the week, but closed near the high of the week, which suggests being slightly on the bullish side of neutral.
The stochastic is showing an overbought market however and is displaying lack momentum.
Expecting an upward move to a Fibonacci extension at 4,884 (scenario 1) on a break above the previous week high at 4,823.00 but a bounce of the Fibonacci extension at 4,884 may trigger a correction toward a weekly support at 4,739 (scenario 2). Nevertheless a break below the previous week low at 4,625 may force the index down to a key level at 4,528 (scenario 2).