Two important price developments occurred today. The first is the open lower. As discussed in yesterday’s Briefing, a lower open with stronger breadth would signal the possibility of a move back higher. That is exactly what happened. Additionally, in the first hour of trading, it was clear sellers had exhausted themselves, and buyers stepped in on high volume to start the rally.

The question now is whether the rally today is complete and lower prices are ahead of us or is there still more upside work to do. As was the case today, watch for a higher open on weaker breadth that will suggest the beginning of another move lower. Higher prices with breadth as strong or stronger than today will signal more upside to come.