Higher highs and higher lows are what make an uptrend. When that stops being the case, it's time to reassess.
Let's step back and take a look at the Dow Jones Industrial Average. The diverse mega-cap index makes a great benchmark for the broader market.
Right now, the Dow is sitting at a critical Fibonacci extension level, around 42,000. That also lines up with the July highs, adding more weight to this key area.
If the Dow stays above 42,000, the uptrend is alive and well and there's nothing to be overly concerned about.
But if it slips below that level, things could get messy and it'll be time to prioritize strategies that thrive in that kind of environment.
This would also send the Dow toward a lower low on short-term timeframes, calling the health of the tactical trend into question.
