CPI Sends Stocks Lower, But They Recover

The Stock Indices opened lower today. Volume was high in the first two hours of the decline, but Breadth was diverging, suggesting the possibility of a rotation up. That is exactly what occurred. While the rally off today’s low was a low volume event, it appears the selloff may be complete. That would be negated, if the short-term support levels are traded through. Should that occur, breadth should be weaker than it was at today’s low. If not, expect another rally.

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