Below is the link to today’s Briefing. Two important things occurred today. The first was the confirmation I have been talking about for quite some time concerning the weakening of the market internally. The structure of the market simply could not support price and we saw the expected move lower. While it is always possible for the structure to strengthen to support price, that typically happens on a news event. Unfortunately, the news is not positive for the bulls. The second is the Russell has broken major long term support. As I discussed in last night’s Briefing, we can expect a retest of the breakout point. However, it will be important for it to hold below that level.
Finally, the NASDAQ has reached a point of being oversold, but the NYSE still has some room to go. This suggests we may see some additional downside tomorrow before we see any type of rotation back up. How that countertrend rotation develops will be important to analyze.