SPX - Uptrend channel resistance

Quote from Maverick74:

I would NOT sell premium here. I think there is a decent chance of a parabolic upside move coming here. As the old saying goes, the market doesn't give you this long to sell a top. And then you pointed out, we are "obviously" at the top of a channel that everyone sees. We've been basing here for two weeks now. Rarely do markets break through strong bases that they form. No, this base is a launching off point in my opinion. What I have always found that really helps is to put away the index chart and look at the charts of the sectors and the leadership stocks. The sectors give you a more clear picture.

BTW, AAPL is breaking out as well to the upside.
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Thank you for your insight, will do some work on what you suggested.
 
I tried drawing this same channel on my charts but I wasn't able to. I was confused for a minute, but then realized that the reason for this is because I'm using log scaled charts and you're using linearly scaled charts. Attached is what the weekly looks like using log scaling.

Using log scaling, if we draw the bottom channel line using the two points you chose, and make the parallel line cross the high on 4/26/10, then we're closer to the bottom of the channel then the top.
 

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Quote from Lawrence Chan:

Time is often more important in channels than price.

Late August is the time window for this channel.

Sometimes, abnormal option volume will help pinpoint the event day.
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After mid August, the mkt just cannot help itself and tank. =)
 
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