Nasdaq Challenging Key Monthly Resistance

In a similar fashion to its $DJI brethren (link), the $IXIC is trying to break out of its "Channel" formation in an effort to move higher.

Given this move, the $IXIC is trying to make a run for 7,879 - a Key Monthly Resistance Level (Blue) for the index.

One thing to lend support for the $IXIC to move higher, is the fact that its RSI is showing positive divergence with current price action. Nonetheless, for the $IXIC to continue pressing forward, if the RSI can break above its red downward trend line , it would further strengthen the $IXIC upward trend.

If the $IXIC can successfully "Breach and Close" above 7,879, it would be a good sign for the market.

Nasdaq brushing up against in monthly resistance level (blue).

Nasdaq brushing up against in monthly resistance level (blue).