Normally, I make the weekend Briefing available to non-subscribers. However, after studying the charts this weekend, I believe the Indices are at a major pivotal point. In today’s trading, short-term support was broken. That now becomes resistance. The markets closed at the low of the day. That suggests there will be additional selling at the open tomorrow. Volume is low on rallies and high on declines. Market breadth is tepid on any rally. This is not a market that is strengthening at this point. While that can change, we must be aware of what is in front of us.
The perception of value on the part of traders can and will change with a news event. While we have to be aware of any change in valuation, I am concerned the environment for a bullish case is diminishing. If the lows made on October 4 are broken, that will suggest the market is transitioning from a weekly timeframe correction to a monthly timeframe correction.