As expected, the rotation higher that began on Friday continued through today’s trading. Important to the move is the fact that it appears to be countertrend, suggesting the possibility of a move lower. The Indices are short term overbought. Therefore, how any move lower tomorrow develops will be very important. Additionally, anticipate an early move above today’s high on weaker breadth. If that were to occur, the Indices will likely trade back through today’s high. This would be a signal of weakness for the day.
Any move above today’s high on stronger breadth and volume, suggests the probabilities increasing for a test of the highs.
Subscribe to the Briefing and receive all of the recordings and updates: The Markets in Development Briefing