Stock Indices Show Signs of Internal Strengthening

Friday brought the Stock Indices to important support levels. If these levels are broken, it will suggest the higher probability of a greater degree time and price rotation lower. However, the Russell saw more strength than the other Indices and both NYSE and NASDAQ breadth strengthened on Friday. This divergence should be respected. Unless it is eliminated early in the week, the possibility of another rotation up exists. However, if support is broken, look to the internals to confirm the breakout move.

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