Stock Indices Pause And Work Off Oversold Condition

As discussed in last night’s Briefing the Stock Indices did have, what appears to be, a countertrend rotation today that worked off an oversold condition. The question for tomorrow is whether this pause is over, or will it continue for another day. Tactically, the Indices have given us another opportunity at trade location, using the extremes of today, as long as a breakout is confirmed by the internals.

The NASDAQ is testing intermediate support. If that is broken tomorrow, it will likely weigh on the other Indices also. The Russell is still holding up better than the other Indices. That is abnormal in a downtrend and causes me to be a little skeptical of a major move lower at this point.

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