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SPX and INDU: Are the Bulls Bored Yet?


The Dow Jones Industrial Average has now reached the target zone of January 3, but as yet there are no signs of a turn.

Yesterday, the Dow Jones Industrial Average (INDEXDJX:.DJI) effectively reached my target of January 3. The preferred and alternate intermediate counts are still both bullish -- though there's one small bear hope still remaining (an ending diagonal, not shown) since the key long-term pivots haven't been crossed yet. Bears would basically have to turn the market more or less immediately in order to pull out a stunning upset, but currently that appears to be low probability.

As it turns out, my observation on October 8, 2012 of a three-wave rally into the 2012 high, and subsequent expectation that the market would make new highs after the correction, proved to be accurate.

Click to enlarge

The long-term chart of INDU notes the next resistance levels. If bulls can keep pushing a bit farther, they give themselves a shot to run toward the black dashed median line, and potentially as high as the top of the black channel.

Click to enlarge
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No positions in stocks mentioned.
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