Stock Indices Retreat From Support As Anticipated

In last night’s Briefing, I outlined how weak the market internals were, even as the Indices approached important resistance. It is always a higher probability for price to correct to the internals and that is what occurred today. At the close, the Indice had reached short-term support, with the Russell breaking it and testing longer-term support. The Transports and Russell also signaled the possibility of another rotation lower. While the market is short-term oversold at the close today and having reached short-term support, it would not surprise me to see a pause tomorrow. However, if today’s lows are traded through and breadth is as weak as it was today, expect price to accelerate lower.

Leave a Reply

Your email address will not be published.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