Subscribers who have attended the Chart Seminar will be familiar with the fact that a failed upside break leads us to the conclusion that the vacuum of supply has not formed above the range.
A rule of thumb from the seminar is that if the dynamic of the failure is greater than the dynamic of the breakout then the price is likely to go back and test the lower side of the range.
Apple broke out to new highs yesterday and posted a downside key day reversal today.
Microsoft broke out on Friday and posted a downside key day reversal today.
Alphabet hit new recovery highs on Friday and posted a downside key day reversal today.
Downside follow through tomorrow would signal failed breaks for all of these shares.
Amazon accelerated higher over the last couple of weeks and posted a small downside key day reversal today.
Micron Technology has been rising in a straight line since early February but is now looking susceptible to a pullback.
This action continues to highlight the fact that the stock market remains in a broadly corrective phase.Back to top