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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.


Still no material change in the S&P 500 (INDEXSP:INX), though I presently have some slight concern about the rally from the 1470s being part of an extended fifth wave (black alt: 3 and 4), and INDU has now been added to the markets which have reached my targets, so I continue to feel it's prudent to protect profits. Beyond that, the market is starting to lull all of us into a bullish stupor -- and when complacency sets in, the market becomes ripe for unexpected corrections. The blue trend lines would be the first warnings.

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I also still feel that the Philadelphia Bank Index (INDEXDJX:BKX) may provide some clues to the short-term and whether or not to expect a larger correction in the near future.

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In conclusion, the market is still within a third wave rally, so until it gives some signs of a turn, there's nothing to do but continue to ride the trend. Trade safe.

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