Morning Update - SPX & PPH

The S&P 500 Large Cap Index (SPX) - Hourly chart
The SPX has officially entered boring mode. The SPX is currently in an ABC correction in a wave (3) to (4) pullback. If the SPX goes below 1246, that would be confirmation that the SPX would be headed lower. Remember bulls live above 1246. The stochastics on the hourly chart have been oversold all month. At this time you either play nothing or play the long side.

The S&P 500 Large Cap Index (SPX) - Weekly chart
There are tons of possible patterns on the weekly SPX chart. However, at this time there is no follow through and the market remains flat. What we need is follow through either to the upside or down side. As you can see by looking at the chart, The SPX has held it's long term uptrend line and the moving averages are holding up nicely s well. The indicators and oscillators are in a bullish trend reversal. The target remains 1304-1334.

The Pharmaceutical Holders ETF (PPH)
On the weekly chart, the PPH has broken its downtrend line going back to the year 2000. The back test to the down trend line is now complete. The Aroon just had a bullish cross and the PPO is starting to turn up and stochastics are bull flagging. I would start looking towards this sector because there may be some rotation going on as investors become more risk adverse and more defensive. I would look at Pfizer (PFE) and some large cap pharma's. Keep an eye on this sector because eventually there will be rotation out of commodities and into utilities and pharma's. The longer term price target for the PPH is around $90.00.