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SPX and INDU: Bulls Will Stay in Control Unless Bears Can Take SPX 1430


The pattern can still go either way, but bears are at a disadvantage at current levels.

MINYANVILLE ORIGINAL Last night I studied a great number of charts, and found that there are several markets which are running at cross-currents. Investors seem a bit confused.

Because of these cross currents, I'm going to keep today's update fairly simple. The bottom line is: This is still a pattern that can go either way. After debating a number of factors, it appears that unless bears can break S&P 500 (INDEXSP:.INX1430), the bulls remain in control.

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Two short-term alternate counts for SPX are shown below:

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The hourly chart of the Dow Jones Industrials (INDEXDJX:.DJI) (INDU, below) shows my big picture preferred count.

It's still unclear if the current correction is completely over.

Click to enlarge

An SPX trendline chart, with some key levels noted.

Click to enlarge

In conclusion, given the corrective appearance of the decline and the key overlap at 1456, it remains difficult to get away from the very strong momentum readings on the daily and hourly charts at the recent SPX swing high of 1474. Again, we would expect to see some type of negative divergence before a meaningful top. So, barring a solid break of SPX 1430, it still appears bulls are in charge. Trade safe.

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