The intermediate term analysis has not changed as of the end of trading today. Intermarket divergences still exist with the Transports and Russell signaling the higher probability of lower prices as they did at the end of September. The NASDAQ is showing more weakness and appears to want to trade lower next week. Only the Dow Industrials and S&P are not showing as much weakness.
While any news over the holiday weekend can change the perception of value by traders, I expect we will see lower prices next week in the Indices. The one issue that gives me concern is normally in a countertrend move lower, volume will increase as investors move to the sidelines quickly. This trend lower is on extremely low volume and it continues to decline.
Short term, the Indices are sporting a series of lower highs and lower lows. Unless or until those are broken, there is a greater possibility of renewed selling next week. However, once this intermediate term countertrend move is complete, it will offer a tremendous buying opportunity.