Stock Indices Trade Through Important Support

I have been discussing in the Briefings the higher probability the rally off the October low is countertrend and another leg lower is in the offing. As that countertrend move developed, I covered its analysis and projected the possible end at the 410 area in SPY. While there was always a lower probability of a continuation of the rally in a longer-term rotational pattern, Holding at 410 and then reversing suggested the analysis was correct. Today, important support levels were traded through. While the Market is oversold and I have to anticipate some type of pause to work off the oversold condition, it is still possible to see additional downside. Watch breadth on any lower low.

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