Stock Indices Appear To Have More Downside Risk

The Stock Indices reached important intermediate support on Friday. While the price was falling, the internals of the market were strengthening, signaling the possibility of some type of rally. That rally occurred but developed in a pattern that suggests it is countertrend to the move lower. This raises the possibility there could be more downside risk the first part of the week. Trading above Friday’s high on strengthening internals would eliminate this probability. Unless that happens, a retest of the lows is possible.

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