Market Internals Strengthen Going Into the Close

While everyone anticipated a selloff today, and the Indices did selloff, the market internals were slowly strengthening. Volume declined going into the low today and market breadth was stronger on a lower low in price. Fifty-two-week highs minus lows were negative but not to the degree I would have expected.

Based on the above, I would be bullish coming into Tuesday’s trading. However, there is a geopolitical event that may occur between now and the open on Tuesday. That event can change the perception of value on the part of traders and investors and we could see another thrust lower. So, until that geopolitical event occurs, use caution.

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