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.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.