The Stock Indices began a selloff today as anticipated in last night’s Briefing. However, they also reached an important support area today and are extremely oversold. Either they will begin another leg higher that will be a more complex countertrend rotation to the move off of the all-time high, or they will pause, work off the oversold condition and then begin another impulsive leg lower to test and take out the recent lows.
If that sounds like I just said the Indices are either going up or they are going down, it is correct. What will determine the next short-term move is how any pause develops tomorrow. If it is truly a pause, then we will thrust lower when it is complete. If any move higher looks impulsive, expect another leg up to test the 284 area in the SPY and then a possible larger degree selloff could occur.