Stock Indices Pause At Important Short-Term Support

Yesterday, the NASDAQ led the Indices lower. As anticipated, today was a day of rotation or pause. Important is they closed at or near their lows, suggesting the possibility of follow-through on Monday. If there is, watch for a breadth divergence to suggest the decline is running out of steam. There is still some strength left internally in the Indices that could turn this current move higher. If the SPY trades below 451, it will suggest it is catching up to the QQQ and IWM and intermediate-term support will be the next critical level to hold.

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