Stock Indices Approach Important Support

As you will see in the Briefing, I believe the probability of a larger move lower in the Stock Indices is growing. The price decline so far is confirmed by breadth and new highs minus new lows. However, volume is not at a point where sellers are simply selling everything. It is an orderly selloff. That opens the possibility of a much greater flushing out before we see a significant rally. The Indices reached a point of being extremely oversold today, which suggests a possible pause to work off the oversold condition. However, it does not preclude the market from continuing its slide, which could become impulsive at any time.

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