Stocks Slide Lower Today, But Are Extremely Oversold

The Stock Indices had a slow drip day lower. At the open, there was a divergence in breadth, but that was quickly eliminated as price drifted lower. At the end of the day, the Market reached a point of being extremely oversold, but the Indices closed at or near their lows, suggesting they want to go lower. Once again, the key will be a divergence in market breadth on any lower low that is sustained at least through the first hour of trading.

If there is a rotation up tomorrow, how that develops will be very important in determining the next degree move. Of course, if there is any additional negative news, the Market could flush itself. This is a very tricky timeframe.

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