Going into the end of the week, the Stock Indices performed as anticipated. The countertrend rotation up ended just were I projected resistance to be and started a decline. However, while the structure of the decline appears to be confirming the move, the price action is giving a possible conflicting signal. Friday’s move lower resulted in an intermarket divergence between the Russell and the other Indices. More importantly, the move was not impulsive. That will need to change early in the week. If it does not, then the possibility of another leg up is going to become the higher probability.

The Indices will need to trade below last week’s lows and do it impulsively or the alternative strategy is developing.

DAILY BRIEFING 200404 from Joe Mertes on Vimeo.