Stock Indices Pause And Work Off An Oversold Condition

The Indices were paused for the day, as suggested in last night’s Briefing. This resulted in working off an oversold condition. The internals of the Market remain very weak. This suggests to me, the possibility of additional downside tomorrow. However, if that is the case, it will be important for the internals to weaken even more to confirm the move. Most important will be volume. It will need to increase, signaling more sellers entering the Market. Watch for divergences on any lower low that could signal a rotation back up.

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