-The DOW needs to break the channel trendline to begin to reverse the trend.  The index is likely to consolidate very briefly before continuing higher to test 8315 and 8405.  If the DOW breaks the lower trendline, it will retest support at 7449.  If that level is breached, then look for the index to challenge the swing low at 7114.  My feel is that we are still going higher after a brief respite at current levels.

-Support at 804 is strong.  Should the SPX break this level, then look for the index to test 780 and then 741 which is crucial support.  I feel that 804 will hold and the SPX will move higher after a brief consolidation and challenge 875.  If 875 is breached then look for 944 as the next target.

-The trend is still valid.  The key is whether or not the index stays within its’ trading channel.  The gap at 1496 should be stout suport.  If that level is broken, then we will look at 1434 which has been strong support.  I feel we will briefly rest at current levels and then go higher to challenge 1598 and then 1666.

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