The S&P broke out to the upside today. The good news is some of the internals strengthened to support the move. However, inter-market divergences still exist. The Russell and NASDAQ, while higher today, are lagging and not in a position to break out.

If there is a higher high on Monday and volume and breadth are increasing above today, the move is potentially gaining strength. On the other hand, if the internals are weaker than today any high above today, use caution. A higher-high on weaker internals is likely signaling false breakout. It’s all about price development and price structure at this point.