Stock Indices Show Some Strength Internally

Today, market breadth was extremely weak. However, during the day, net volume was not as weak and it appeared the thrust of lower prices was waning. This led to a rotation up that has the Indices closing at their highs for the day. As a result, we can expect some follow-through in tomorrow’s trading. If there is, the internals will be very important in confirming the continuation of higher prices. At the close, the NYSE was oversold and the NASDAQ was extremely oversold. Therefore, I have to expect a continuation of a pause or slightly higher prices to work off the oversold condition.

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