Stock Indices Diverge

Between yesterday and today, the SPY has closed below critical support. The QQQ is testing its support and the Russell spent today simply rotating around support. From a price development perspective, the intermarket divergence will be rectified. The key will be if the SPY can hold below 410. If it cannot, then the longer-term analysis of the SPY testing the 440 level is still valid. If it holds below support and the other Indices break support, then the rally is likely complete, and more downside is in the offing.

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