Stock Indices Capitulate To Internal Weakness

In previous Briefings, I have discussed how the market internals were weak and not confirming the rally we have seen over the last several days. Intermarket divergences existed, suggesting not all was well within the market. Today, the Russell gave a short-term indication of a possible selloff. The other Indices followed and closed at the low of the day. This suggests follow through tomorrow. On any lower low watch for a divergence in market breadth. That will indicate at least a short-term bottom.

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