Market Internals Strengthen Going Into Friday Close

Surprisingly, the market internals strengthened going into Friday’s close. That strength brought a surge in prices. Additionally, on Thursday the Russell formed a double bottom, along with positive divergences in the S&P and NASDAQ. This all suggests there should be follow-through on Monday. However, if breadth is weaker than Friday, expect a possible rotation down. If the rally that started on Thursday is to continue, it is imperative for the internals to continue to confirm price development.

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