During a corrective phase in a bull market, price action should find support at the highs of the last valid base (resistance turns in to support). All major averages are pulling back in to the highs of the last base. On the weekly charts below, current price action is pulling back in to support of the highs of the last base, which is the purple horizontal line. We view support as more of an area rather than just one line, so as long as the price action holds at or around this level it is bullish.
