Market Internals Diverge Along With The Dow

The SPY and QQQ both made higher highs over the previous trading day. The Dow Industrials were down substantially with only six components trading higher and the rest selling off. Add the fact that Market Breadth is declining and volume is falling off and you have a precarious situation. PPI numbers are out tomorrow. While the intermarket and internal divergences exist, if those numbers are bad, it can change the internals to support the current rally. The Market is looking for bad economic news in hopes the Fed will stop raising interest rates.

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