Stock Breakout Of Rotational Pattern

The Stock Indices broke out of a rotational pattern they were in for most of the week. What was resistance is now support. If this is developing into a greater degree countertrend move, then what was resistance is now support and it must hold. If not, it is a false breakout and we will be back in the same rotational pattern. Closing at the high of the day suggests higher prices on Monday. However, watch breadth carefully. If it is diverging, it will offer the possibility of a false breakout and rotation back through support.

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