Stock Indices Strengthen Internally

The Stock Indices moved higher in today’s trading, supported by an increase in breadth. This does suggest the possible continuation of the rally off Monday’s low. Two things bother me about this. The first is the Transports. They continue to move lower and are diverging greatly from the Industrials. The second is the price pattern of the S&P and NASDAQ. Both appear to still be corrective in nature to the decline off the all-time high. This can be corrected in tomorrow’s trading, but it will be important to see if the Transports begin to weigh on the rest of the market.

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