Stock Indices Add To Friday’s Gains But Internals Are Weak

The Stock Indices added to Friday’s gains, but volume continued to fall off and market breadth was declining. While there are those who think the bottom is in, I am skeptical until I see short-term resistance traded through and the internals strengthening significantly. Until that happens, the risk is still to the downside. Additionally, the current series of lower highs and lower lows is still intact. Today’s pause at the end of the day does offer a good short-term trade location on a breakout.

Leave a Reply

Your email address will not be published.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