Stock Indices Retest Support

As discussed in several Briefings, the Market spends most of its time in rotation and that is exactly what happened between yesterday and today. Important is the fact lower support areas are once again being tested. The internals confirmed the selloff today but it was orderly. Because breaking support opens up the possibility of a greater degree time and price move lower, we could see accelerated selling. On the other hand, the Market reached a point of being extremely oversold today, suggesting some type of short-term rotation up or pause to work off some of the oversold condition before selling begins again.

Leave a Reply

Your email address will not be published.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