Indices Go From Extremely Oversold To Overbought In One Day

Yesterday, the Stock Indices reached a point of being extremely oversold, suggesting some type of pause or rotation to work off the oversold condition. That is exactly what happened today. In fact, they went from oversold to overbought in one day. While it does not preclude a move higher, it does suggest there may be another pause or rotation lower on Monday. Thursday was a very weak day in terms of breadth but today the Indices strengthened internally. The resolution of price and internal strength should resolve itself early next week.

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