If these prior highs hold as support and price stabilizes before pushing higher, that would represent a healthy retest — and a clear point on the board for the bulls.
In that case, the bull market remains alive and well.
But if price fails to hold this level and slips back into the former range, it would hand the bears a meaningful win and potentially mark a major failed breakout.
That's where a serious red flag could emerge.
Either way, the way these stocks behave here should offer valuable insight into the health and sustainability of this bull market.
In other news, join Steve Strazza and JC Parets LIVE today at 4 PM ET for an exclusive session where they reveal their short-dated options strategy for the first time — the exact system they've been quietly using to target 3x, 5x, even 10x weekly returns.
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Alfonso De Pablos, CMT
Director of Research, All Star Charts