Stock Index Internals Not Signaling A Bottom Yet

As discussed for the last two weeks, the structure of the Stock Indices was weakening, suggesting some type of top was forming. Now, the trend has turned lower. Obviously, this is a greater degree time and price correction to the years long rally. This should produce a tremendous buying opportunity when a bottom is formed.

Near term, the Indices worked off an extreme oversold condition in today’s trading. While there is still a chance for a continuation of a pause in the downtrend, the higher probability based on price development and structure is for at least another leg lower.

DAILY BRIEFING 200226 from Joe Mertes on Vimeo.

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