Market Internals Signal Today’s Reversal

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.

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