Stock Indices Extend Higher Attempting to Test Important Resistance

As discussed in last night’s Briefing, the Stock Indices are apparently in the process of completing a rotational pattern and may very well test the upper extreme of the rotation they have been in since the end of June. This makes the upper extreme very important. If they trade through this resistance, then they are transitioning into a greater degree of time, and price move higher. The market did reach a point of almost being overbought. However, they closed at their highs today, suggesting they want to trade higher on Monday. Volume still is not confirming the rally. It continues to decline, especially in the NASDAQ today. Until the rally can draw in additional buyers, I remain skeptical, but the rally is tradeable.

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