Since the beginning of April, the Stock Indices are in a typical area of rotation and not making much progress after testing lower support. At this point, they are now at an upper extreme of those areas. The problem is the market internals are deteriorating. This does not suggest strength coming into the resistance areas and raises the probability of another rotation lower. Unless the market internals strengthen on any additional move higher, use caution.

In addition to the above, there is now a non-confirmation between the Dow Industrials and the Dow Transports.

I have just posted a paper on Trading Unfair Price Levels.

Unfair prices exist when a trend comes to an end and profit taking begins. The opposite is true in a downtrend. Knowing where those levels are in various time frames can offer excellent areas of trade location. Having that information can help significantly in tactical entries, profit projections and stop management. There saying, “the trend is your friend” is certainly true. However, understanding where the market has determined price to be too high or low, offers a significant edge in trade management.

You can access it here for $2.95. How To Trade Unfair Price Levels