Index Divergences Still Exist

The CPI numbers came out slightly better than expected. This led to an opening market rally. However, as you will see in the Briefing, the Russell and Industrials both spent the rest of the day selling off. The Industrials actually closed lower for the day. Volume was slightly higher and breadth expanded nicely. What happens tomorrow will now be extremely important. Critical short-term support is today’s low. The intermarket divergences give me some concern.

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