Stock Indices Have A Bad Day

The Stock Indices had a terrible day after the release of the CPI numbers. As the day progressed, it got worse. While the decline was substantial, the market internals confirmed the move. The question for tomorrow is whether there will be follow-through. They did reach a point of being extremely oversold at the end of the day, but that does not preclude lower prices tomorrow. If there is follow-through, watch for internal divergences that can signal a possible pause or rotation up to work off the oversold condition.

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