Market Breadth Expands, But Is It Sustainable?

Intermarket and internal divergences still exist. One internal component, market breadth, did eliminate its divergence on Friday. However, the Indices reached a point of being extremely overbought by the close. New highs are flat. Volume collapsed on Friday and the Transports are not confirming the Industrials. Monday will tell us whether the expansion in breadth for one day is an anomaly or if it is the beginning of building an internal base for expansion higher. Watch for a divergence in breadth on Monday.

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