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Wednesday, July 26, 2017

SPX, INDU, RUT: My Favorite Market


Anybody remember the show My Favorite Martian?  It was actually a bit before my time, but they were still showing reruns when I was a kid.  I ask because lately I've been getting the theme song stuck in my head whenever I try to chart this market -- because this is certainly My Favorite Market.

Here, try it... read the titles below as "My Favorite Market," then add the theme song... and, voila (French, literally: "aaargh!"), you'll suffer from the same brain-debilitating mental garbage that I'm currently enduring!  (Sorry! Yet somehow the song feels strangely appropriate to this market.)



Anyway, moving on to the charts for My Favorite Market, SPX at least, seems to be on track for the next target zone:



INDU still has its options open -- but at this stage, if it sustains trade above the ATH, such a move might then suggest that it's going to skip the red "c?" option.



Bigger picture INDU is unchanged:


RUT has required yet another look, since it finally broke out over the key 1442 level.  I'm still not willing to call this whole chop zone of the past few months a bull nest, though -- so the most reasonable option (with the diagonal dead) is an expanding triangle fourth wave.  And the subwaves fit that pattern:


In conclusion, this has continued to be the most difficult market we've seen in years, in my opinion.  I would continue to advise bears to avoid front-running this pattern, and await an impulsive decline before committing to any strong action.  Trade safe. 

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