Stock Indices Continue Rally But Internals Show Weakness

The Stock Indices surged this week. The trend is certainly up. While the trend of price must be respected, it is important to note the internals are not supporting price, at least at this time. The internals can strengthen and usually do around a news event. However, unless or until that happens, expect some type of pause or countertrend move to the current rally. The first part of next week will be extremely important. Either the rally will begin to draw in additional buyers, or the rally will stall. Volume and breadth for next week are critical to keeping the rally going.

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