Intermarket Divergences And Internals Signal Today’s Selloff

Coming into today’s trading there were glaring Intermarket divergences, suggesting a market that was not healthy. Additionally, the internals were weakening, confirming the higher probability of some type of rotation lower. Today, the Fed gave traders the incentive they needed to accelerate selling. While the Indices reached a point of being short-term oversold, any additional move lower must be confirmed by a continuation of weak internals. Any lower pricing with stronger internals will signal a possible pause or rotation up.

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