Stock Indices Test Major Support On Increasing Volume

The Stock Indices tested major support on Friday with some of them closing just below it. Key to the development of price is volume increased on the move lower and market breadth declined significantly. This suggests there will likely be follow-through on Monday. However. it will be important for the internals to continue to weaken and not show any significant divergences. If they do, it will suggest a possible stopping point and some type of rotation back up. With that said, any extension of lower price and confirmation by the internals will open the possibility of a much greater degree time and price move.

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