Stock Indices Trade Through Short-term Resistance

The Stock Indices followed through with the rally off of a news event. Today, they traded and closed above short-term resistance, which is now support. Breadth expanded nicely supporting the move. However, volume was tepid. If the rally continues on Monday, watch for a divergence in breadth. If there is, expect some type of pause or rotation lower. On the other hand, if there are higher prices and breadth is expanding, expect a test of intermediate-term resistance.

Leave a Reply

Your email address will not be published. Required fields are marked *