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SPX Trend still bullish- Expecting upcoming push next week above SPX-4200. Dips have support at 4080-90.

The relentless churning in US Equities continues.  While this past week has proven to be a choppy mess of consolidation, it certainly hasn’t done much to convince me that prices are headed down under 4050 right away.

Daily SPX charts show prices at nearly the same levels as where SPX closed six weeks ago. Thus all of April as well as the first two weeks of May have proven quite uneventful. However, as the saying goes, “Never short a dull market” I don’t suspect that those expecting immediate market peaks will be proven correct just yet, despite the waning breadth. (Waning breadth is normally what happens as stock indices move from uptrends into a sideways pattern.)

The Bank index ETF’s ($KBE, $KRE) remain churning near recent lows, and while these have stabilized, they haven’t turned up all that sharply just yet.  I suspect they likely start to bounce next week.

At present, this white line of support shows the area that would need to be violated to disprove my theory that stocks likely push higher above 4200 before any larger decline. 

In the short run, Friday’s weakness can very well test Wedn...

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