Stock Indices Bounce of Oversold Condition

The selloff in today’s trading was impulsive in nature, although price did not decline as I would have expected based on the internals. This led to a late afternoon rally bouncing off of important support levels. As a result of the oversold condition, it would not surprise me to see additional follow-through on Tuesday. How that develops will be important if there is another thrust lower. Right now, the Indices are in an area of rotation offering good support and resistance levels, discussed in the Briefing.

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