With an index in a long-term downtrend, a support corridor is the point at which the first indications begin to arise that the market may be about to establish a support level. A key indication for a support corridor is generally an increased production of Selling volume.

When the market is in a support corridor, we generally do not recommend that conservative traders place any trades, but rather remain in a cash position. In a support corridor, trading can be very volatile and erratic.