Stock Indices Finally Break Support With Confirming Internals

The Stock Indices broke through important support today. This move was accompanied by a continuation of weakening breadth and increasing volume. They closed at the low of the day and this suggests follow-through tomorrow. However, the CPI numbers are out before the open and they could have an effect on the determination of value by traders. If that does not occur, expect a continuation of lower prices to the next level of support. If breadth diverges on any lower pricing tomorrow, expect some type of rotation back up. The Indices did reach a point of being oversold today. While that does not preclude a continuation of selling, it will be a warning of internal strengthening.

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