The Market Retraces Some Of Yesterday’s Rally

As you will see in the Briefing, the Indices retraced about 40% of the rally from yesterday. While they closed at their lows, suggesting more downside for Monday, be aware this could be the end of the second leg in a three-step countertrend rotation up. The downtrend is still intact for now. All of this is occurring at a very important support level. If today’s low is taken out, then the low of yesterday will likely be traded through and then we could see acceleration. Alternatively, if we trade higher, then the countertrend strategy will become the higher probability.

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