As discussed in the Friday Briefing, the Stock Indices did have another leg down. However, there was not a divergence in Market Breadth. After the initial thrust lower today, the Indices paused. The extreme oversold condition was not alleviated. Therefore, the slightly higher probability is for an additional move lower tomorrow. If that occurs and Breadth is diverging, it will suggest a move back to the upside. How that develops will be important.

If there is no gap down tomorrow and the Indices start up right away, the development of price along with the internals will be important in analyzing whether this correction is complete or there is another leg yet to come.

DAILY BRIEFING 200127 from Joe Mertes on Vimeo.