Stock Indices Continue To Rally

The Stock Indices continued to rally today, as discussed in last night’s Briefing. Accompanying the move higher was a divergence in both breadth and volume. This suggests market participants were not as sure of a continuation of the rally as they were the previous day. This will be important to monitor on Monday, assuming the rally continues. I have outlined important resistance areas in the Briefing. If those areas are tested, monitor the strength or weakness as they are approached. Weakening internals can suggest a possible reversal. So far, the rally is being fueled by assumptions of lessening inflation and the Fed backing off from continued interest rate increases. Any news to the contrary can see the fuel drained and another leg lower.

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