S&P 500 (SPX) Near Critical Channel Support

Periodically I have referred to channel support area on the enclosed weekly chart, which cuts across the price axis at 1228-1225, and which must contain forthcoming weakness to preserve the uptrend off of the August 2004 low at 1060.72. The low so far for the May-June decline, hit this morning at 1229.78, is beginning to probe the lower channel support lines. If 1228-1225 is violated and sustained, then we should expect downside follow-through towards a full-fledged retest of the prior significant low at 1168.42.

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