Stock Indices Reach Important Support In Oversold Condition

The Stock Indices reached very important support today. While they closed at the lows, suggesting more selling tomorrow, they are also at an extreme oversold condition where some type of pause or countertrend rotation could occur. The key will be two things. The first will be trading below today’s low. The second is for breadth to be as weak or weaker than today. If breadth diverges on any additional low, expect another rotation up to possibly work off the oversold condition. The support areas covered in the Briefing are extremely important.

Leave a Reply

Your email address will not be published. Required fields are marked *