Weak Market Internals Finally Weigh On Price

Today, the Indices have all extended losses below important support levels. The weak market internals finally have brought in some selling. The Indices closed at the low of the day suggesting follow-through tomorrow. However, they are oversold but not extremely so. While there was no divergence in the QQQ or IWM today, there was a slight divergence in the SPY. Watch for any strengthening tomorrow on any lower low, suggesting a pause or rotation back up. On the other hand, if there are lower prices and the internals are not diverging, expect the next levels of support to be tested.

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