Bull Channel in Stocks

As discussed in our reports yesterday, stocks got batted down from highs. This was highly likely due to the fact that there really wasn't a clear spike of momentum to take us up definitively to higher levels. Additionally, the bull wedge we thought we saw mutated into somewhat of a bull channel. If the pattern continues, we will see support at 3658, which is where the lower bounding trendline will meet a technical level. Recall that if we break down from this pattern, we could easily hit 3617 or 3584. This would be confirmed by selling pressure at 3658.