Stock Indices Pause Just Above Important Key Reference Area

The Stock Indices broke out on Wednesday. Since then, the SPY and QQQ have paused just above important support. The IWM is yet to breakout. Volume is low and the other internals are diverging. However, this is not uncommon in a rotational pattern. The pause for the last two days offer good trade location in terms of a multi-timeframe breakout. If there is a move higher, it will be extremely important for the internals to strengthen to support the move. If support, that was resistance, is traded through, it will suggest the potential for a rotation lower. On the other hand, if the uptrend is to continue, we will need to see additional gains soon.

Leave a Reply

Your email address will not be published. Required fields are marked *