Watch the Transports and Nasdaq
06/07/2010 11:57 am EST
The market internals tested key resistance but turned lower with Friday’s heavy selling. This would normally favor selling on Monday morning, but lately it has been tough to tell. I believe the key markets to watch are the Transports and the Nasdaq as a break below the February lows (3742 and 2100) would weaken the intermediate-term trend. The short-term A/D indicators are ready to form positive divergences, but are still declining.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.