Wednesday, October 27, 2021

SPX and the Index Formerly Known as INDU

I was going to say that there hasn't been much change since last update, but then I checked my StockCharts chartbook and was shocked to learn that INDU apparently ceased to exist yesterday.  This changes everything:

The long-term monthly chart for INDU looks equally grim:

So I'm not sure what to make of that.  I can only presume this means a planet-killing asteroid struck the Earth and I'm stuck in some sort of weird limbo where I still have to do updates for all eternity, possibly as punishment for that time in seventh grade when I forgot to return some library books.

Oddly, SPX seems to have made it into Limbo with me:

And continues to look bullish as long as the breakout sticks (maybe this is part of my punishment?):

In conclusion, INDU no longer exists, so I wouldn't worry too much about that particular index.  Again, barring some type of complex correction showing up out of nowhere, SPX continues to look like bears will be stuck in limbo with me for a while.  Trade safe.


  1. Can you please activate my account? User Name is scarey. Requested last Friday as well. Made a donation at start of September. Thanks.

  2. INDU no longer exists 😂

  3. Thanks for your charts and blog. Can you say if bull 2 has to be higher low than bull ii low or similarly bull 4 low has to be higher than bull iv low ?

    1. I meant to say bull ii low higher than bull 2. Anybody? with link if possible as I could not find it through google glasses.

    2. This comment has been removed by the author.

    3. In an uptrend, ii must be a higher low than 2; vice versa in a down trend (lower high). (edit: transposed this:) Wave two can retrace up to 100% of any wave one, but CANNNOT exceed 100%.

      Hope that answers your question. :)

  4. Also: "Cannot" not "cannnnnnnnnnnnnnot"

  5. On Sept 22nd I commented that 2 major angles on my weekly chart were going to intersect the week ending Friday Dec 10th. You have indicated the last two major Wave 4 lows in the SPX were 1810.10 in Feb 2016 & 2191.86 in Mar 2021. On my weekly chart (10 Pts/Week), the 45 degree angle moving up 10 pts per week from 1810.10 intersects the angle moving up 30 pts per week from 2191.86 These two angles cross around SPX 4845.60. It is interesting that since the Sept post, Congress put off voting on the Reconciliation Bill until that week in December.