Last update didn't have much in the way of predictions, but shortly after Monday's open, the market revealed its near-term intentions, so at 10:56 New York time, I posted in our forums that I thought SPX might head down to 2038-40, then reverse back up to 2064-67. That's exactly what happened on Tuesday, so hopefully forum members were able to benefit from that roughly 40-point round-trip call.
If the market breaks out, the near-term pattern will become a little iffy for bears. I can still see one bear pattern (detailed on INDU's chart), but bears need a fairly immediate reversal for that to stand a chance. Let's start with SPX in broad strokes, then we'll look at INDU for detail:
INDU's chart contains some additional details, along with some random notes for edumacayshunal porpoises (= really smart sea-dwelling mammals who can't spell):
In conclusion, the market has drawn the battle lines fairly clearly, so the next move will likely have at least some near-term legs in the direction of the break. Trade safe.
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