SPY And IWM Break Through Short-term Resistance

Both the SPY and IWM broke through resistance today and strong market breadth. It was a broad-based rally for stocks. The QQQ lagged. It did test resistance but failed to follow the other two in extending gains. Coupled with that intermarket divergence is the fact that volume was extremely low and continuing to decrease. With that said, price development must be respected. However, it is important to remember it takes volume to continue a trend. Watch for higher highs tomorrow, but use caution if breadth is not as strong as today and volume is still low.

Leave a Reply

Your email address will not be published.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