Stocks Pause At Support And Work Off An Oversold Condition

Today’s Briefing is a little longer than I like but I felt it important to cover both long-term and short-term analysis. Also, I discuss the importance of using a 15 minute chart to gauge divergences in breadth at the open and to look for follow-through. While the Indices are at important support as discussed in yesterday’s Briefing, today’s rotation up appears to be countertrend. This opens the possibility of another move lower. If that occurs, support will be broken again and much lower prices can develop. Alternatively, because they are at support, we have to be open to another rotation up to test resistance. Analyzing the internals on any price increases will be critical.

Leave a Reply

Your email address will not be published. Required fields are marked *