Stock Indices Pause In Front Of Economic News

As you will see in the Briefing, the Stock Indices spent the entire week in a rotational pattern. Market internals continue to deteriorate. Important also is the fact there are now intermarket divergences. Even this week, the QQQ was showing more weakness than the SPY. The Russell is not even close to testing its all-time high. It may be, the Market is paused in front of next week’s economic news, including a Fed announcement on interest rates. If the current longer-term breakout move is to be sustained, it will be important for the internals to strengthen to support price. Certainly, the news next week can help strengthen the current trend. If not, expect some type of rotation lower.

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