Intermarket Divergences Exist As Breadth Diverges

As you will see in the Briefing, some of the Indices have broken to the upside with increasing volume, but decreasing breadth. Also, some Indices have not broken to the upside. The Dow Industrials, Transports and Russell are all lagging the S&P and NASDAQ. The resolution to the intermarket and breadth divergences will be important for the next intermediate degree move. Watch short-term support and resistance areas if traded through. However, any breakout move should be accompanied by increasing breadth.

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