At the beginning of the week I laid out two possible scenarios. In a more normal market I would have expected a move lower this week. Last week we had a very strong move lower from overbought, over bullish conditions. followed by a reflex rally higher. The normal script called for a move lower this week. However, in recent months every move lower would be followed by a steady climb to new highs so that possibility had to be given some consideration.
Today's action looks like the action of a more normal market. Under these conditions I would expect the market to be under pressure for the balance of the week. If we do head lower into the end of this week we will be oversold early next week. Have a good night.