The Stock Indices, once again, are testing an upper extreme of an area of rotation. This intermediate term rotation has been ongoing since July. Important to the analysis is they paused at the upper extreme of the rotation last week. This makes the resistance levels discussed in the Briefing extremely important because they are Key Reference Areas in multiple timeframes and potentially good areas for trade location.
Market breadth was strong on Friday. Therefore, if there is a break above the upper extremes of last week and breadth is not as strong as Friday, then use caution. It could suggest another false breakout.
DAILY BRIEFING 201114 from Joe Mertes on Vimeo.