Stock Indices Sell Off On Weak Breadth And A News Event

The ADP employment numbers came in this morning twice as strong as anticipated. This led to a market decline supported by breadth. While volume increased somewhat, it will take another thrust with much higher volume for today’s move to become impulsive. The Indices finished the day extremely oversold. Therefore, there may be some type of pause or rotating to work off the oversold condition. On any lower low, breadth should not be diverging.

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