Total NYSE Volume Signals Possible Warning

As traders and investors, we must trade the information the market gives us. However, at times it is diligent to look back on previous experiences and then begin to look for other clues as to the strength of a trend. With that said, the Stock Indices appear to be topping, once again. If you remember a few weeks ago, I warned the Indices appeared to be ready for a larger timeframe countertrend rotation. That occurred twice. Once again, the information from the market suggests a possible weakening of the trend.

My biggest concern is Volume. Total NYSE Volume is collapsing. New highs are beginning to decline and market breadth appears to be faltering. While we may still see higher prices on Monday, the Market is overbought. Attention should be paid to a possible continuing of internal weakness. If the structure of this trend does weaken, there will be some type of countertrend rotation lower. The degree of time and price can only be seen, if and when important support levels are broken.

DAILY BRIEFING 190405 from Joe Mertes on Vimeo.

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