In today’s Briefing, I discuss the “pause” the Stock Indices have been in, and the fractal nature of the pause since the beginning of April. Important to the analysis is the fact Friday’s trading brought the Indices to important short-term support levels. If those are broken, intermediate support will be tested.

As of the close on Friday, the Indices reached an extremely oversold level. This suggests some possible rotation up or a pause to work off the oversold condition. However, they closed at the lows on Friday. This suggests the possibility of lower prices on Monday. If this occurs, watch breadth. If it is diverging, expect a rotation back up. If it is as weak or weaker than Friday, the move is becoming impulsive and lower support will be tested.