The Stock Indices traded above Friday’s high but then quickly retraced the attempted breakout. This was a result of extremely weak internals. On the open, a quick view of breadth and net volume was a clear indication the open did not have enough strength to sustain the move.

The intermediate-term question facing us is whether the current downtrend is complete. As discussed in the weekend Briefing, it appears there is a risk of at least one more leg lower. Until resistance is traded through and the internals confirm the move, use caution on long positions.