As discussed in last night’s Briefing, the rotation up off the of the recent lows still has the characteristics of a countertrend move, suggesting at least one more leg to the downside. Today, the NASDAQ and S&P both reached the upper resistance. More importantly, as discussed last night, the Russell and Transports did not confirm the move in the other Indices. Remember, they have signaled turning points previously.
Volume continues to fall on each move higher. This is very concerning. Therefore, until any move higher begins to show some internal strength, use caution on long positions and good stop management.