NASDAQ Drags The Market Out Of A Potential Selloff

The Indices opened lower today and it appeared it was going to be a significant day to the downside. However, breadth in the NASDAQ was not that negative and began recovering after the open. As the NASDAQ surged, the other Indices continued to rally. We have seen this before. Rallies on very low volume are eventually retraced. With that said, if the rally continues tomorrow, breadth should continue to increase along with volume. In the past, we have seen rallies on low volume that are retraced very quickly. I am not a believer until I see volume confirm a move. It should be attracting buyers, not seeing them wane.

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