Stock Indices Trade Lower On Diverging Breadth

The Stock Indices traded lower going into the close today. However, all-day market breadth diverged. Even with a long-range selling bar breadth did not give up its strength. That was a clear sign to use caution on short positions. Tomorrow at 8:30 EST important economic numbers are out. They will have the effect of changing the perception of value for traders. Allow the market to settle at the open and then monitor breadth carefully on a move in either direction. It will tell you if the move has strength or not.

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