The Stock Indices continue in a countertrend move higher. There is no information from the Market that suggests this is not countertrend, at this point. In fact, as you will see in the Briefing, the Market Internals continue to deteriorate. The result has been a very important rotation pattern that has given us excellent areas of trade location and triggers to suggest the next greater degree move, which should be extensive.
For the last two weeks the resistance levels discussed in these Briefings have held. The rally on Friday should be looked at with much skepticism. With that said, we can only analyze the development and structure of price based on data coming from the Market. Just as price structure warned of an impending move lower, no one could have predicted the extent of that move down to the March lows. It was a news event that drove the selling. I anticipate the possibility of another move lower, assuming there is no other news that changes the perception of value. There is simply no volume in this market as price struggles to move higher.