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SPX Update: Intermediate Low in Place?


While there's still work to do, bulls have taken the first steps toward validating an intermediate bottom.


The 5-minute chart anticipated the rally perfectly, and Friday's market looks destined to hit the 1st-tier 1430-1432 target which was published on Wednesday -- when my blue target box looked a lot more lonely than it does now. Considerably more upside is possible, and if the high-degree preferred wave count is correct, the market is on its way to 1480-1490 at the minimum.

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Finally, a quick update on the Philadelphia Bank Index (INDEXDJX:BKX), which negated the triangle count I published, but held onto all the key overlap levels the bulls needed to hold. This market also appears likely to have put in an intermediate bottom.

Click to enlarge

In conclusion, the bulls still have work to do to validate these projections, but the odds currently favor the view that the low is in, and the intermediate trend is changing back to upwards. As the move unfolds, I'll continue to note the key levels which would indicate trouble for the bull case. Trade safe.

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