Stock Indices Rally But Then Fade

The stock Indices today rallied into important resistance. It appeared they were going to trade through it, especially with breadth as strong as it was in the morning. However, resistance held, and as price drifted lower, so did market breadth. The rest of the day saw the Indices trade down to the low of the previous day and then trade through it. Volume is still extremely low on both rallies and declines and that is concerning. It does not give an indication of an impulsive move in either direction. Today’s low will be very important support in all of the Indices, especially the Russell.

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