Is The Market Signaling Warnings?

Intermarket divergences are much more exacerbated. While the NASDAQ was up today, the S&P was flat, but the Russell, Industrials and Transports were all lower. Obviously, higher weighted stocks, especially in the NASDAQ are holding those Indices higher. Market internals in all of the Indices are deteriorating. Unless the internals change and begin to support price, eventually the majority of stocks will weigh on even the higher weighted ones. While these signals can change, it is best to pay attention to them. Short-term support levels, if broken, can signal the beginning of a larger move.

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