Stock Indices Move Impulsively Lower

The Indices opened lower today, followed by increasing volume and declining breadth. Other internals were weaker as well. While the Market closed at the lows today, suggesting more selling tomorrow, we have reached a point of being oversold and they are at extremely important support levels. Therefore, I have to expect the possibility of some type of rotation or pause to work off the oversold condition. On the other hand, if the bearish pattern I have been discussing occurs, we could see another gap and run as we saw today. How the Market closes tomorrow is extremely important.

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