In financial markets, when the term “break” is used as the opposite of a “rally,” it refers to a significant and often sudden decline in the price of an asset or market index.
Unlike a rally, which is characterized by rising prices and optimism, a break indicates a downturn, marked by falling prices and generally pessimistic sentiment. During a break, key support levels are often breached, triggering sell-offs and potentially leading to a bearish trend. Just as a rally can be fueled by positive news or strong economic indicators, a break may be triggered by negative news or weak economic data.
« Back to Glossary Index