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Today’s action in the stock market was a classic false breakdown. Traders sell the market off to new lows, trigger sell stops down there and then ramp the market higher.

RSI (at the top of the chart) as well as the MACD Histograms (the blue lines at the bottom) diverged nicely from prices today and the market closed higher on very good volume.

This is a classic bullish setup that should last for some time.