Major indices testing channel resistance

A quick blog to alert traders that the major indices are now testing upper channel resistance. Should the indices break these levels to the upside, a rally continuation is the likely outcome, barring unforeseen event risk (as always).

Below is a daily chart for the S and P 500 (SPX). Its performance can be extended to that of the other major averages as well. Note that the index is putting in its fourth lower high. Should price movement be rejected by the upper channel resistance level, a breakdown to a support level lower than the previous one is to be expected.

SPX Chart 7-13-10

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