Diverging Internals Weigh On Price Development

As discussed in last night’s Briefing, the Market internals were diverging, suggesting the trend in price was weakening and to be aware of the possibility of some type of move lower. The move today was significant. The Market closed at the low of the day, suggesting it wants to go lower. Market internals supported the move but it did not reach an oversold condition. If there is a lower low tomorrow and Breadth is diverging, expect some type of pause. If Breadth is lower than today, expect a continuation of today’s downtrend.

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