Stock Indices Pause As Suspected

As discussed in last night’s Briefing, the intermediate-term trend is down. However, yesterday the Indices reached a point of being extremely oversold. That suggested some type of pause or rotation to work off the oversold condition. That lead to the rotation higher today. The question now is whether that rotation is complete or if there is another leg higher. If the SPY trades through yesterday’s low, and it is very close to that now, it will suggest the rotation up is over and another leg down is developing. If yesterday’s low holds, expect another leg up to test short-term resistance.

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