The market is channel surfing

Well once again the Light Blue square wins, see previous post and chart below for the squares. As I mentioned this morning if the dollar weakened the market would rally. The market was up 2% today. The dollar was down again today the EUR/USD rallied.
Here is one thing to notice-

http://online.wsj.com/mdc/public/page/2_3022-mflppg-moneyflow.html -430 came out of SPY, that is selling into strength.

SPX is clearly in an upward channel. The upper channel line has successful been defended, by the bears, while the bottom has been defended by the bulls. But looking at the overall movement of the market, the upward trend seems to be diminishing. Due to the fact the market has not been able to reach the upper channel line. The path to that channel, has some siginifcant resistance ahead of it. There is the resistance of the broken up trendline, plus resistance from the 870-880 level. But for the bulls they now have support at 850-830 plus the EMA's. It is possible that a new channel is forming, but the market will need to confirm this before I draw it on the chart, see if you can spot it.

Untill this channel is broken, the market should continue its trend upwards. I am currently flat, going into the weekend.
Enjoy the nice weather and relax tonight and in the words of Ron Burgundy
"You stay classy San Diego"