The Stock Indices have paused, suggesting traders and investors are unsure whether value is higher or lower. This is likely a result of the very weak internals on the rally off the recent low. Volume has collapsed, market breadth is declining on each attempt to rally and important intermarket divergences still exist.
It is often the case, when a market breaks out of an area of rotation like it is in now, the breakout move is very good and very sharp. However, there is a smaller percentage of time when a breakout will occur in the direction of the previous intermediate trend (In this case up), but it occurs on weak internals. In this case some traders are trying to reignite the trend but if additional buyers fail to follow, it is quickly retraced. If that occurs, it is a bearish event. Alternatively, a break below support levels would be an indication another leg down is beginning.