Monthly charts are slow moving but I believe this one is at a critical point. I've highlighted two sets of divergences which preceded huge falls in the index. Currently we have a rising monthly chart. Whether or not we get divergence will depend on where the index closes for the month of December. November's candle was virtually a tombstone doji which is one of the few candles more bearish than a shooting star. Of course, that will be invalidated with a strong December close above the November high which would also move the stochastic away from forming a lower high. Watch this space.
Second chart is a daily showing fibs for the average monthly range (81 pts). Most alarming is that the first three sessions in December have completed nearly 50% of the average monthly range! AND, it looks strikingly similar to the first week of November after which it quickly ran out of petrol. Monthly UP range in black, monthly DOWN range in red (if this were to be the monthly high).
