Stock Indices Test Lower Short-term Support

The Indices opened higher today but there was no follow-through. That led to a rotation down and a test of the short-term support levels. While the internals did not suggest a strengthening to the downside, a break of support should see confirmation with the internals. Employment numbers are out Friday and there is a FOMC announcement on Wednesday of next week. Because the Indices are at important resistance areas, it may be they are waiting for the coming news to give price development it needs to breakout of the current short-term rotation.

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