Stock Indices Reach Short-term Resistance

The Stock Indices reached short-term resistance in today’s trading. As they did that, volume continued to decline. This suggests the rally is not attracting new buyers and may be challenging to continue unless volume increases. The Indices were slightly overbought at the close, but it does not preclude them from moving higher tomorrow. If there is a higher high, watch for a divergence in breadth that could signal a false breakout.

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