Stock Indices Pause And Work Off Being Short-Term Overbought

As discussed in yesterday’s Briefing, the Indices finished the day extremely overbought. This lead to the probability of a pause or rotation lower to work off the overbought condition. That is exactly what occurred today. While the SPY and QQQ made slight new highs over yesterday, the day was mostly rotational with the internals supporting the pause. A lot of the overbought condition has been alleviated, however we could see additional rotation tomorrow. A break above today’s high should suggest another leg higher, assuming the internals are supporting it.

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