Sometimes even the best stocks hiccup upon their breakout. But when they stumble en masse, they may be signaling something more serious than a temporary market spasm.
All bulls eventually stop running.
But the market continually renews itself with a broad decline that wipes the slate clean for the next rally. These leaders break out of sound price bases on surging volume throughout the market's rally. But breakouts are not fail-safe. A stock can soar on an explosive increase in volume, then sputter in the following days or weeks. The stock may drop back into its base, or even roll over.