Let's get right into the charts today, starting with the SPX intermediate chart. On the chart below, it's important to note the back-test of the red trend channel. Bears need the market to fall back into that channel and sustain trade and closes to really get anything going. Bears beware any trip below the channel that is relatively short-lived, though.
Near-term the rally was rejected by the 50% Fib retracement, but will have a shot today at claiming that level. The next near-term targets are noted:
BKX has the appearance of a market that may continue correcting for a while, though since this is presumed to be a larger-degree 4th wave, it can grind traders up if it wants to:
In conclusion, my conviction on SPX's next move remains marginal, while BKX does look like it wants to continue correcting. Near-term bearish bets on BKX are off if it sustains a breakout over the presumed wave iii high, of course. Trade safe.
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