SPX and INDU Updates

Last update noted that we were in an inflection zone, though I did make one prediction:

So if you forced me to make a prediction here, I'd be inclined to think that we at least retest the most recent low, and if we break it by much, then the targets on the SPX chart come into play.  That said, here are the caveats: 

In conclusion, the market is at an inflection point here -- if bulls can whipsaw the most recent channel breakdown, then they could put together a solid rally.

The inclusion of "in conclusion" in the caveats apparently confused one reader who asked "Where are the caveats?"  The caveats were "the market is at an inflection point here -- if bulls can whipsaw the most recent channel breakdown, then they could put together a solid rally."  My apologies if my phrasing confused anyone.

In any case, we did get the predicted retest of the low, and bulls did whipsaw the channel break, and have put together a solid rally.  Question now is whether that was the bottom or if the rally is part of another fourth wave.  INDU's chart below shows why Wednesday was an inflection point:  It was the divider between an ABC down and an impulsive decline (INDU made a new low on Wednesday, btw, but IT needed to, while SPX did not):

Bigger picture, no change:

SPX also in a similar position, having whipsawed the channel break -- at least for the moment.

In conclusion, Wednesday's prediction for a retest came to pass, and the market has rallied since.  If this rally is a fourth wave, the next near-term inflection zones for SPX are yesterday's high, plus or minus about 8 points, and 2960 plus or minus a few points.  If the rally is the start of a new primary bull wave, those levels ultimately won't matter.  Trade safe.