Employment Numbers Weaken Market Internals

While the Indices made a higher high today, the Market internals continue to weaken. The Employment Numbers out this morning did not do anything to strengthen the internals. If fact, they weakened even more. As discussed in the Briefing, there appears to be a “floor” in the Market. Therefore, even though there is a slow grind higher, unless the internals strengthen, the risk is to the downside. If 525 in the SPY and 450 in the QQQ is traded through the buying tail not defended from last Friday, it could open a rotation down to test lower support levels. The lack of internal strength in the current rally is concerning, but the trend is up for now.

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