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By Lawrence G. McMillan

The low-volume rally of last Friday (July 6th), finishing up the holiday week, was a breakout over resistance at 2740. That has spurred a strong, quick move to the next resistance level at 2800. $SPX is now bumping up against the March intraday highs, and it has closed at its highest price since January.

These new relative closing highs make the $SPX chart bullish in that there is an upward channel with higher highs and higher lows. That channel is marked with blue lines on the chart in Figure 1. The top of the channel is at 2840 and rising, so if $SPX can clearly break out above 2800, that upper trend line should be the next stop.

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