As you will see in the Briefing, the Stock Indices have been in a multiple timeframe rotation. This is significant because upper extremes were tested last week but then the Indices backed off from them. The key here is Friday’s trading. Understanding timeframes, you will see breaking Friday’s low suggests a short term correction to test intermediate term support. Breaking that support suggests a much greater degree rotation lower.
On the other hand, breaking Friday’s high opens the possibility of testing longer term highs and that raises the possibility of breaking to the upside. This makes Friday’s high and low extremely important and areas of good trade location.
The Indices did close at the low of the day on Friday, suggesting they will go lower Monday. If that occurs and if there is a divergence in volume and breadth, expect rotation back through Friday’s range. If volume and breadth support trading lower, watch the intermediate support areas discussed in the Briefing. They will give you a high probability of the next greater degree move.