Stocks Indices Test Important Support

For the past seven to eight trading days the Stock Indices have been paused at an upper extreme of a greater degree time and price pause. On Friday, they attempted to trade below both lower extremes (the short-term pause and intermediate term pause). Market internals appeared to support the decline. Therefore, if there is a continuation of selling next week, it will be important for the internals to continue weakening below Friday’s low. If not, expect another rotation back up.

The Markets are closed on Monday and Wednesday is inauguration day. It will be interesting to see if that day changes the perception of value on the part of market participants. The Briefing outlines important support and resistance levels. If either of those are tested, the internals should confirm the move.

DAILY BRIEFING 210116 from Joe Mertes on Vimeo.

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