SPX, COMPQ, INDU: Provisional Targets

Not much happened on Friday, so let's revisit our big picture Rosetta Stone chart first.  I'm going to reprint Friday's notes about it, for anyone who missed last update:

INDU is once again trying to stay over its very long-term blue trend line.  Let's discuss both options:

1. If it CAN stay over blue, then bulls should get at least a few more weeks of happiness and possibly much more.  Bears will get another shot at upper red -- that will be an inflection (and if INDU sustains trade over red (a breakout would be expected either way; the question will be if it can hold it), then that's very bullish).

2. If blue fails, then bulls get another shot to hold support at black.  If black fails substantially, then we'll have to start looking at horizontal support zones (such as 45.7K) and things can get ugly fast.

Next up, we can now project provisional upside targets in COMPQ if it can sustain trade over its all-time high:

SPX's pattern doesn't allow clean targets like COMPQ, but we could expect it to behave similarly (i.e.- a decent rally over the coming weeks) if the COMPQ conditions are met:

In conclusion, INDU remains our key chart at this juncture.  Basically, as long as the long-term blue trend line holds, then we can only favor the bulls for more upside.  Which is nice, because that makes things really simple right now.  In the event INDU sustains a breakdown there, then we have next levels to watch.  But if there's no breakdown, then there's just no reason to even consider bearish things unless or until there is.  Trade safe.