Stocks Pause To Work Off An Oversold Condition

The intermarket and internal divergences in the Stock Indices still exist. In fact, the internals weakened more today. The SPY traded and closed right at support after trading through it. The QQQ and IWM are still lagging, along with the Transports. While it is difficult to be patient during these intermediate-term pauses, when support or resistance is broken, it is typically a good move. Tonight’s Briefing outlines those support and resistance areas. Keep a close eye on the internals. Unless they strengthen to support price, the chance of another leg greater is still present.

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