Dow Transports And Russell Signal More Downside Risk

The Dow Transports are in the process of testing the February 24 low. The Russell is following, having traded through intermediate-term support. The QQQ is right at support and appears to want to go lower. The strength in price development is with the SPY and Dow Industrial. The Indices are coming off of testing important resistance and it held. Therefore, how the rotation lower develops will be extremely important for next week, assuming there is a continuation of a move lower. So far, the internals have been weak on both rallies and declines. If they strengthen on any additional move below today’s low, expect the February 24 lows to be tested.

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