SPX, INDU, COMPQ: Inflection Point Arrives

 

Last update noted that as long as INDU held its key zone, there was no reason to get bearish, and the market has continued rallying since then.  Let's start with the most interesting chart:

SPX:

Finally, INDU actually stalled while COMPQ and SPX were rallying, but it's still above its first key trend line:

Last update's conclusion still holds: 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. 

Near-term, COMPQ, at least, is into its upside inflection zone, which probably makes this an important moment for the rest of the market, too.  If COMPQ can sustain trade north of 24K, then that would be an all-clear for bulls for the immediate future.  If it gets rejected here, then near-term bear options will stay on the table.  Trade safe.