Wednesday, January 31, 2024

SPX and BKX: Visualize Whirled Peas

The past few updates prognosticated that the market still had farther to run on the upside, which has proved out -- but the next upside target (from Jan. 23) was captured, so it's "wait and see" for a minute now:

I want to keep the bigger picture in the forefront of our memories unless and until bulls can demonstrate that they have the firepower to keep this (I want to say "charade" -- is that wrong and can you blame me?) going.

INDU can run higher, and very well may, but worth knowing that it's now done what it needed to do for the rally to complete any time it's ready:

Same with BKX:

In conclusion, SPX has captured its next upside targets and could thus embark on a correction if it so desires.  Not a lot in the way of targets yet as any correction may or may not be short-lived, but the long-term red line is probably worth watching.  I also don't want to imply that a major top is imminent, as this could run higher for a while first; I'm just pointing out that a top is possible any time it's ready -- but we'll watch for impulsive declines to signal that.  Trade safe.

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