In an intermediate-term timeframe, the Russell and Transports both signaled the rotation lower we have seen recently. Additionally, the Russell showed more strength coming off Monday’s low. However, from a price development perspective, the Russell showed more weakness in today’s trading and closing right at important short-term support. If the Russell is leading the way, watch carefully to today’s low. If it is broken on Monday, it could signal another leg lower.

The move off of Monday’s low simply looks and feels corrective to me. This would suggest another leg down. However, we could be in a slow grind higher. Therefore, if Thursday’s highs are traded through, expect the slow grind higher to continue.