S&P And Industrials Grind Higher, NASDAQ And Russell Diverge

As you will see in the Briefing, a few hundred stocks included in the S&P 500 and the Dow Industrials are carrying the S&P and Industrials higher on a slow grind. However, more importantly, the broader market is in a decline, as represented by market breadth. This week, net volume showed more selling volume and total volume declined, suggesting the rally in the two indices is not attracting more buyers. The question is which group will win this battle. Will it be the few moving higher in the S&P and Industrials or will it be the broader market. Until we see some resolution to these divergences, caution on long positions is warranted.

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