In last night’s Briefing, I discussed the fact the move lower yesterday did not appear to be impulsive. I also mentioned, if we traded below yesterday’s low, it would suggest something greater in degree of time and price was developing. That is exactly what occurred today. The move lower in the Stock Indices was impulsive to sure. However, the Indices did reach a point of being extremely oversold. This suggests, unless there is some negative news, the Indices should give us some type of rotation up to work off the oversold condition. How that develops will be very important.
If the Indices trade impulsively down again tomorrow, it will confirm the greater degree time and price correction is in process.