(CercleFinance.com) – The historic records of July 27 at 22,703 and 22,617 at closing fell, with new zeniths of 22,832 intraday and 22,774 at closing… at the end of a session without volumes (not even 2BnE at 5:30 p.m.), without buyers… and especially without sellers (a species that has disappeared since 2012).
The index has just achieved a ‘direct extreme’ of +1,000 Points between 21,800 and 22,800 in 8 sessions and has just gained +11.4% in a straight line since the bottom of October 27 without ever having fallen more than 1% in 24, 48 or 72 hours.
This is the 2nd movement of more than 11% this year after the 6 weeks of rally between 19,000 (January 1) and 21,650 on February 17 (+14%)… but there was also a ‘rush’ of + 2,100Pts between March 15 and April 24 between 20,235 and 22,325 (+10.4%).
The 3 impulse waves in question present the same pattern: funicular rise, no retracement (regardless of the news, the geopolitical context) and in the end, an annual gain of +20% without any ‘drawdown’ of more than 10% during the year, so no ‘technical correction’ worthy of the name materialized.
Each time, the movements propel the technical indicators beyond the overbought zone… and the declines occur without warning signs (neither divergences nor a phase of hesitation below the peaks).
The CAC40 ‘GR’ finds itself exactly in this configuration – with an obvious historic double-top risk – but everyone now expects prices to be either ‘pulled’ even further upwards (like this Friday which presented all the characteristics of an ‘end of year dress’) are kept in levitation until Friday the 15th (‘4 witches’).
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