As discussed in last night’s Briefing, the Stock Indices opened higher today on diverging market breadth. This suggested the greater probability of some type of rotation lower. While it took a news event to make the rotation down impulsive, it is important to note market breadth signaled the move.
It appeared yesterday the possibility of a greater degree time and price rotation lower was reduced probability, it is now a greater possibility. Tomorrow’s trading will be important. If the Indices close below today’s low, it suggest there is more downside work to do.