Monday’s Briefing discussed the possibility of a pause or countertrend rotation up due to the Indices being extremely oversold. Yesterday’s Briefing discussed the fact the S&P appeared to have completed it countertrend move, but the NASDAQ and Russell suggested another leg higher. The S&P lost that divergence and we had a continuation of the rally.
Equality was reached in all three Indices today, suggesting the rally may be complete, unless this develops into something more complex. If there is a higher high tomorrow and breadth is diverging, expect a rotation lower. A higher-high with stronger breadth and higher volume will suggest the rally is developing into something more complex.