The Stock Indices gave some clues on Thursday of strength. Friday’s open continued to show strength in the internals and through intermarket divergences. That led to aggressive buying throughout the day on Friday. The Indices traded through critical resistance levels and closed at the high of the day. Other internal factors contribute to a greater probability of a continuation of buying on Monday.
If Stocks open higher on Monday, but there is a divergence in market breadth, some type of rotation lower could develop. Trading above Friday’s high on a divergence in breadth and then trading back through that high would give concern Friday’s move is false. It will be critical the market internals strengthen on any higher high.