Microcaps Lead The Way Lower
October 3, 2023
Price is currently breaking a critical polarity zone around 100. This area was resistance before the covid-crash and, more recently, has acted as support several times since last summer.
This is the fifth shot sellers have taken to violate this level. One thing we know as technicians is that the more times a level is tested, the more likely it is to break.
If bears finally take control and force a downside resolution, the bias is lower for these laggards.
Under this scenario, there's a heightened chance the overall market will come under increased selling pressure.
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Alfonso