Stock Indices Continue An Impulsive Selloff

As discussed in the weekday Briefings, the Stock Indices have penetrated important support levels and now are either below or testing even longer-term support. Important to the current downtrend is the market internals are confirming the move and continue to deteriorate. If you followed the weekday Briefings, I was able to catch some great short opportunities.

The Indices closed at their lows today. This suggests follow-through on Monday. If there is, watch the internals carefully. At the sign of any lower low and strengthening internals, it will signal some type of move higher to work of an extreme oversold condition. On the other hand, if there are lower prices and the internals continue to weaken, expect accelerated selling. So far, the selling is orderly.

Leave a Reply

Your email address will not be published. Required fields are marked *