Stock Indices Continue Lower But With Some Internal Strength

There was some short-term strengthening of market breadth today. Add to that an extreme oversold condition. This suggests putting tighter stops on short positions. Watch for a lower low tomorrow. If breadth is stronger, it will mean a rotation back up is developing. On the other hand, if there is a lower low and breadth is as weak as it was today, price will accelerate lower.

Leave a Reply

Your email address will not be published.