Stock Indices Rally But Internals Not Confirming

While the Fed minutes today spurred the Stock Indices into an afternoon rally, the market internals certainly did not support the move. There is a huge divergence in market breadth. If the rally today is going to be sustained, that divergence should be eliminated on any trade above today’s high. If not, the rally is suspect. On the other hand, if short-term support is broken, expect the possibility of testing the January 24 lows.

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