Stock Indices Complete A Rotation But Test Important Support

The Stock Indices completed a three step countertrend rotation today. However, after completing they sold off once again. Closing at the low of the day suggests possible follow-through on Monday. While breadth diverged short-term, it has been declining this week longer-term. If today’s lows are broken on Monday, it will be very important for breadth to continue to fall. If not, expect another rotation higher. Alternatively, if today’ low is traded through and breadth is lower, expect price to fall below extremely important support.

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