Stock Indices Recover From Extreme Oversold Condition

As discussed in last night’s Briefing, the Market closed yesterday in an extreme oversold condition. That led to the rotation higher today and working off of most of the oversold condition. While there could still be follow through on Tuesday, it will be important for the internals to strengthen significantly. For the past weeks, as price has migrated higher, the internals have weakened. I originally thought good NVDA earnings might help to strengthen the internals, but that was not the case. The Market is at risk on a continuation of higher prices without an increase in volume, breadth and other internals.

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