# Support Levels Holding?

Canonical: https://stocksurgedaily.com/support-levels-holding/

Hey, Ross here:

Before we head off into the long Labor Day weekend, let’s look at a chart that adds to the evidence that we might see a second sustained rally soon.

**Chart of the Day**

![](https://lh4.googleusercontent.com/ADxzs_jfX0HaRsTsuL0nItnE_ILH55vOHTbGQi29a5AfkcbVlqw6Bl9mCJkI6IAYX4Kg3mduEVF488xllTZ4QahRAa6hc2z4W6tZ2pnnn83CzJPdshHhsuDWfkMoS-tQGxnCzzm0N8i4wkTF_x2ZjrQ)

The above chart shows the S&P 500’s August 2022 highs successfully acting as support in both June and August of this year.

When previous resistance becomes new support – that’s another good sign.

I’m still cautious about the market as we enter a new trading month – especially since September has historically not been a good month for stocks. 

I’ll want to see the price action play out a bit more before increasing my conviction.

But as we head into the Labor Day weekend, things are looking up.

**Insight of the Day**

**A key trading skill is being able to differentiate between healthy pullbacks and breakdowns**

A healthy pullback is a necessary consolidation to shake out the weak hands before the market moves on to higher highs.

A breakdown is when even dedicated buyers flee the market – causing it to break previous support levels.

Being able to tell the difference between the two is a critical skill.

Reading price action is essential to do this, but you also need to factor in the macro environment – such as corporate earnings, interest rates, and so on.

This skill is what allowed me to confidently recommend multiple double to triple-digit winners all through this year.

So, if you want to make sure you’re 100% prepared for what comes next…

**[Click here to get a hold of my top strategy for doing so _(in honor of Labor Day it’s yours for just 99 cents)_.](https://stealthmodeinvesting.com/holiday/?tambid=20630)**

Embrace the surge,

![](https://stocksurgedaily.com/wp-content/uploads/2023/05/image.png)

Ross Givens  
Editor, **_Stock Surge Daily_**