The Stock Indices surged today on strong market breadth but decreasing volume. The SPY reached important resistance in the 450 area. The QQQ reached 363. The IWM fell short of its resistance in the 206 area. By the end of the day, the Market was extremely overbought. This suggests the possibility of some type of pause or retracement tomorrow. How that develops will most likely confirm whether the low on January 24 is the bottom for now. Needless to say, the Market strengthened as the day progressed.
The Indices closed at their highs today. This suggests there may be some additional upside at the open. However, watch market breadth. If it is weaker than today, expect retracement through today’s high. Once again, these levels are very important for the intermediate-term development of price.
I was unable to prepare a recording for tonight but will hopefully be able to do that for tomorrow.