Category: General Blog

Stock Indices Decline On Weak Volume

The Stock Indices opened lower today but volume was not confirming the beginning of an impulsive move. On the other hand, market breadth was extremely weak, suggesting internal weakness. The lack of volume signaled the potential for a rotation up and that is what occurred after the FOMC minutes were released. Volume will be the key in identifying the next greater degree time and price move. Until then, the rally off the June 17 low is suspect.

Stock Indices Surge On CPI Numbers

The Stock Indices opened higher today on thoughts the Fed will not be increasing interest rates as high as they have been. Market Breadth expanded nicely but volume still left a lot to be desired. The rally is simply not attracting new buyers and that is concerning. However, price development must be respected. Having closed at the highs today suggests higher prices tomorrow. If that occurs, watch for a divergence in breadth. It will signal a possible rotation lower.

Stock Indices Pause But Divergences Persist

The Stock Indices attempted to move higher today but then faltered. Intermarket divergences exist and the internals did not strengthen today on the opening move higher. While the S&P and Industrials appear to be stronger, the NASDAQ, Russell, and Transports are showing weakness. The market is neither overbought nor oversold. Therefore, what happens in the first hour of trading tomorrow could give us a greater probability of the next greater degree move.