The last year high target (around 620) was not reached as expected and discussed in a previous post, the index reversing at the less known 78.6% Fibo level as shown in the weekly chart above and daily chart below.
During last week the index was also affected by dividend adjustments that sealed the break of the daily EMA50 support. Though the negative influence of the dividends may be seen artificial to the index and stocks in general, the collective market memory is not adjusted for dividends and is more likely to react to the same technical levels existing before adjustments. The same rationale is also applied to index composition changes (e.g. recent FP inclusion).