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SPX, NDX, RUT: November's Upside Targets Captured, and a Look at the Long-Term


Presently, the rally appears clear to continue, but here are the levels to watch. We'll also examine the long-term patterns.


Since the market has performed in line with the preferred bullish intermediate wave count all month, I'm going to focus on that count until the market says I shouldn't. The chart below details the bull count, and also notes the alternate bear count. The bear count would find a top soon, but there's really nothing to yet indicate that we should be looking for anything other than a minor top. The caveat is that although the bull count continues to appear quite probable, do note that my November target zone of 1445-55 has now been reached, and thus an added level of caution is in order. Traders may want to raise stops to protect profits.

Click to enlarge

The SPX hourly chart includes some additional detail. If the market can sustain trade above the upper black trend line, then that would be a very bullish signal.

Click to enlarge

The Nasdaq-100 (INDEXNASDAQ:NDX) has performed admirably since Monday's update, which suggested an immediate low-risk buy opportunity in this index. The preferred count views the current rally as wave (1) up of (c) of iii/c up. It should be fairly easy to protect profits here, since there's now considerable cushion above the buy zone.

Click to enlarge

In conclusion, the rally appears to be firing on all thrusters, and barring a dramatic reversal, it is probable that the next targets will be reached. 1411 now appears to be the critical level for bears to put an end to the party. Trade safe.

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