Stock Indices Pause As Anticipated

At Friday’s close, the Stock Indices were extremely oversold. As I discussed in Friday’s Briefing, this suggested some type of pause or countertrend rotation to work off the oversold condition. Today’s pause has a lot of the characteristics of a countertrend move. Therefore, if there are lower prices tomorrow, monitor breadth and volume. Breadth should be weaker than today and volume should be increasing over today.

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