We know that markets run and then pause in all degrees of time. Certainly, the move lower over the last few days has been a very impulsive and strong run. Yesterday and today saw the Stock Indices pause. The probabilities, after today’s close, suggest we will likely see lower prices tomorrow. Just as it was important to see how the current pause developed, so too, it will be important to determine how any additional move lower develops. If it is strong internally, then it is another run and yesterday’s low will be taken out. If it appears weak, it is part of a greater degree pause and we will likely take out today’s high.
On any move above today’s high, if the internals are not strengthening, expect lower prices when the pause is complete.