The Stock Indices recovered today from Friday’s selloff. However, the internals were still extremely weak. In fact, NASDAQ breadth was negative over 700 shares today. Also, the number of new highs minus the number of new lows is declining. Net volume continues to be negative in the NYSE but slightly positive in the NASDAQ.

Unless or until the internals strengthen, use caution on long positions. Any bad news, as we had on Friday, will send the market for another leg lower.