Stock Indices Move Higher On Declining Volume

As discussed in last night’s Briefing, the gap down yesterday did not appear to be exhaustive. The rally off yesterday’s low is also not impulsive. While it may appear that way from a price development perspective, volume declined all day yesterday and today. While market breadth expanded nicely, the rally was not attracting new buyers. Price development must be respected, but with the knowledge, the internal component of the rally is not strengthening but weakening. The two-day rally appears to be a relief move after several days of selling.

Support and resistance levels discussed in the Briefing are very important for the beginning of next week.

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