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SPX and INDU: Key Levels and Next Targets


A short-term top is likely nearby, but the intermediate outlook remains "bullish unless proven otherwise."


The Dow Jones Industrials (INDEXDJX:.DJI) is in essentially the same position as SPX, and it's also unclear here if there's a bit more upside due before the correction. Note that both hourly RSI (SPX chart above) and 30-minute RSI (INDU below) are showing bearish divergences.

Click to enlarge

In conclusion, unless the bears have a huge surprise up their sleeves, it's expected that the market will continue higher over the intermediate term. The short-term suggests a correction lower is due to begin in the next couple sessions, and a breakdown of the channel on the 5-minute chart would be first warning; while trade beneath SPX 1452 would suggest that correction had begun. Trade safe.

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