Stock Indices Test Extremely Important Support

As discussed in Thursday’s Briefing, the Stock Indices tested important support on extremely weak internals that confirmed the move. Once again, the market is at an extremely oversold condition at an extremely important support level. This does suggest the higher probability of some type of pause or rotation to work off the oversold condition, unless today’s low is traded through and the internals continue to confirm the decline. If and when today’s low is traded through, selling has the possibility of increasing and we could see more impulsive moves lower.

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