Stock Indices Break Important Support

The Stock Indices broke important support today. Additionally, the internals confirmed the breakout. Breadth was at a rare extreme and volume was very good. This suggests we are now transitioning into a greater degree time and price countertrend move.

The Indices did reach a point of being extremely oversold at the end of the day today. This suggests the possibility of some type of rotation up tomorrow to work off the oversold condition. How any rotation up develops will be extremely important in determining the next greater degree move. If the rotation up is countertrend to the move lower today, the next decline could be very impulsive.

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