On Thursday, the stock market broke support. There are a few key things to look out for when we have a definitive breakout such as this. We look for resistance levels (usually previous support) to fail. If they fail as well, then we can assume lower price moving forward. That is a real break of trend. We can only call the current action breach of support until we get a second confirmation. Otherwise, if prices rise back into the previous trend, then this was a failed breakout.
So, this is definitely the point where you need to keep your eyes peeled moving forward. This may be the beginning of a downtrend. Ideally, we would like to see the market retest resistance and fail. If we can get that failure, then I would expect a correction to ensue. For now, we have to wait and see. I will definitely be on top of this for you guys, so be sure to check back as developments arise.
Thank you for reading and watching.
This article was written by joe.shehata