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SPX and BKX Updates: No Material Change


The market remains unclear, typical of a fourth wave correction.

The market remains in the ambiguous zone. I remain marginally in favor of the bears, but am limiting myself to low risk trades, given the ambiguity.

Let's take a look at the Philadelphia Bank Index (INDEXDJX:BKX) first, as the pattern here seems a bit cleaner than the S&P 500 (INDEXSP:.INX).

Click to enlarge

On the daily chart, we can see BKX may be due a larger correction.

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SPX is unchanged. I've outlined one potential path in blue, but there's really nothing to give me much confidence in that path. I've broken down the options in a bit more detail on the chart which follows this one.

Click to enlarge

This chart outlines the two basic counts, with one variation in green (the variation is what's depicted on the SPX chart above).

Click to enlarge

In conclusion, the market remains ambiguous, but I'm continuing to give bears the slight edge heading forward. Trade safe.

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No positions in stocks mentioned.
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