Stock Indices Continue To Slide But Not Impulsively

While price development of the current selloff appears to be impulsive, looking into the internals, there are increasing divergences. How those divergences are resolved will be very important. It appears there may need to be a “flushing out” of sellers before a bottom can be formed and a buying opportunity. Now that the January 24 lows are tested or traded through, it will be important for the internals to begin supporting the selloff, or there will be some type of rotation back up. Tomorrow and Friday could be very important days.

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