Stock Indices Trade Bake Through Support

In yesterday’s Briefing, I pointed out the Indices were extremely overbought and suggested some type of rotation down or pause to work off the overbought condition. The question facing the Market tomorrow is whether today’s selloff was a countertrend rotation or the beginning of another leg lower. Resistance areas are still valid and closing above them tomorrow will suggest today’s move was simply countertrend. Trading and closing below today’s low will open the door to another leg to the downside.

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