Stock Indices Move Lower But Inter-market Divergences Exist

The Stock Indices sold off significantly today, but then recovered in what appears to be a corrective move. The NASDAQ actually closed the gap from the morning, with the other Indices lagging. This divergence is puzzling because the NASDAQ was showing more weakness previously. Tomorrow should clear up the divergences and give a much better picture of the next degree move. While the Indices are extremely oversold, it does not preclude a flush down tomorrow on diverging breadth and then a greater degree rotation higher. The probabilities are about equal as to the direction tomorrow.

Leave a Reply

Your email address will not be published. Required fields are marked *