Stock Indices Decline On Negative Breadth

The Indices traded lower today before recovering some of the losses. Breadth was fairly negative and did not diverge at today’s low. Volume ticked up but it appears sellers exhausted themselves. Important for tomorrow will be the short-term resistance areas. Trading much above those levels will suggest buying the dip and a rotation to the recent highs. However, trading below today’s low on diverging breadth would suggest the possibility of a greater degree rotation in the making based on previous chart patterns.

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