I spent a little more time in this Briefing describing the analysis of the Stock Indices in multiple timeframes and the structure of that price development. I feel it is extremely important to understand in light of the current Market.
In one timeframe Stocks are in an uptrend off the March 23 low. However, the structure of that trend is weakening. This suggest the possibility of a greater degree time and price pause, at least in the intermediate term timeframe. It is always a higher probability price will correct to the internals. However, as I have said before, there is also a smaller possibility the internals will correct to price, supporting the trend. This typically happens around a news event.
Friday saw better than expected employment numbers. The result was a continuation of price development higher, but the internals did not support the move. It will be important, if the breakout is going to continue, for the Market Internals to begin supporting that trend. If not, the risk is, a greater degree time and price pause or correction.
The first part of this week will be important to that analysis, as trader try to determine the next greater degree move.