Since the beginning of June, the Stock Indices have been paused in a rotational pattern. Last week, they once again tested the upper extreme and paused. While they have attempted to break higher, those moves have been quickly retraced. It is likely due to the very weak internals. However, the current shorter term pause at the end of last week, offers excellent trade location.
As you will see in the Briefing, look for a break outside of the short term rotation. That suggests a break of the longer term rotation that should provide a good move. However, whichever way it breaks, be sure to monitor volume and breadth if you are trading the Indices. If they do not strengthen when there is a break, it could be a false breakout. The Indices have attempted to breakout before, but those moves were quickly retraced.
Currently, they are giving us areas of good trade location, if you have the patience to wait for the break.
DAILY BRIEFING 200718 from Joe Mertes on Vimeo.