Stock Indices Finally Selloff But Strengthen At the Low

Finally, the intermarket and internal divergences weighed on price and there was a decent selloff in the Stock Indices. However, going into the low of the day, slight bullish divergences developed, suggesting at least a short-term low was in place. Additionally, market breadth was at an extreme that brought the Indices to extreme oversold readings. That all resulted in a rotation back up going into the close. If there is continued selling tomorrow, watch for a divergences in the internals, suggesting a rotation higher. If today’s low holds, how any rally develops will be important to the next greater degree time and price move.

Leave a Reply

Your email address will not be published.