Stock Indices Test Resistance On Strong Breadth and Low Volume

The Stock Indices moved higher today supported by market breadth. I was surprised to not see a continuation of the gap with breadth as strong as it was. This, I believe, is a result of low volume. The gap simply did not attract new buyers to continue the price drive. This left the Indices in a rotational pattern for the balance of the day. Closing at the high today suggests follow-through tomorrow. If there is, monitor the internals carefully. If they are diverging, it will signal a false breakout from today’s rotation.

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