Stock Indices Continue The Trend Lower

Today, the Stock Indices attempted to trade higher. That move failed. The result was a continuation of market internals and price falling. The Russell is testing the January 24 low, while the S&P and NASDAQ have some catching up to do. This intermarket divergence needs to be monitored carefully in tomorrow’s trading. Either the Russell is overextended or the other Indices have some catching up to do. Just as the divergence signaled a high at the beginning of the month, it could be suggesting a bottom is near. Tomorrow’s trading will give us the information we need to make intermediate-term decisions.

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