Interpret price action in the chart below, combined with takeaways from the SPX New High-New Low index:
Confirmation between price action and indicator; the ongoing pullback can be bought.
Divergence between price action and indicator; suggests exiting of long positions.
Divergence between price action and indicator; can initiate shorts at current levels.
Can initiate long positions at current price level; breadth bottomed out at the same level as the pullback in October 2014.
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