Stock Indices Pause As Internals Decline

The stock Indices continued to pause this week with a slight new high. More important is the fact the internals of the market continued to deteriorate, as price tried to slug higher. Even net volume in the NYSE and NASDAQ continued to decline this week. Market breadth slumped all week. This all suggests the greater probability of some type of move back to the downside. However, if there is a news event that changes the perception of value and the internals begin to strengthen, then the rally can persist. Until that happens, it is very suspect.

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