Stocks Rally, But Internals Still Lag

While the trend in price is up and today was certainly a good day for the Bulls, the internals are still showing some weakness. Volume increased slightly, as breadth and net volume followed. The indices closed at the high of the day, which suggests follow-through tomorrow. The first hour of trading will be very important. If there are higher highs but weaker volume and internals, be suspect of possible follow-through. On the other hand, if there are higher highs and the internals are stronger than today, the rally should be sustained.

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