As you will see in the Briefing, the Stock Indices have been in a rotation pattern for about two weeks. The past week saw them test the extremes of each range. Market Internals have not been strengthening and inter-market divergences are still unresolved.
With that said, price development on Friday was significant. The S&P is testing the upper extreme but the NASDAQ and Russell are lagging. The Industrials are not confirming the apparent strength in the Transports. More importantly, on Friday the Indices, late in the afternoon, traded all the way through the range, allowing the S&P to test the upper extreme of its resistance. The amazing thing was it did this on declining up volume and negative Breadth. The NASDAQ recovered nicely but it also moved on over one thousand shares within the Index trading lower as opposed to higher.
Unless these divergences are resolved early in the week, I would be suspect of the price move that was made on Friday. There is always a chance the Internals will correct to support price, but until they do, caution is warranted.