VIDEO: Stock market broke support. Is this the start of a downtrend?
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.
Today’s Stock Market Analysis:
Previous failed breakout on the S&P 500 futures:
Chart demonstrating previous failure of breakout.
This may be the beginning of a downtrend.
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.
Stock market broke support. Uptrend could be over.
Thank you for reading and watching.
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This article was written by joe.shehata
[...] The resistance held strong and we in-turn got a big sell off. This is quite significant because we had to retest this level and fail for confirmation that this uptrend is over. I can now say with conviction, that the uptrend [...]
[...] Click Here for today’s stock market analysis. [...]