Stock Indices Reach Important Resistance On Extremely Low Volume

The Stock Indices broke to the upside again today and the move was confirmed by breadth. However, volume continues to decline. While there is low volume on both the up and down moves, it is simply a matter of time before the rally of the last two days fades. The Indices reached a point of being extremely overbought today, suggesting some type of possible pause. On the other hand, if they rally tomorrow above resistance on a continuation of strong breadth, it will confirm a countertrend rotation correcting the move lower that started at the end of March.

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