Yesterday's market action was neutral.
The market indexes closed mixed, but even though the Nasdaq did pullback during the session we did see some buying as it approached the closing bell, giving it a tight close. The S&P 600 ended the day in the red and with volume coming in around average gives us a day of professional distribution.
The natural resources sector and global resources sector outperformed - a welcome change. India also outperformed and Russia matched the market. Leading stocks behavior was also mixed, but on the plus side it was good to see a higher percentage of stocks being accumulated than sold off giving us a bullish divergence.
In summary the Nasdaq Composite appears to have resistance at 2960-2965 and support between 2900 and 2911. With the last three days being fairly tight closes, it tells me the Nasdaq may be consolidating and building a handle. If it is building a handle, it would result in the market moving sideways.
The market has had a great run since the start of the year and for now it doesn't want to give much of those gains back. This is good news because when this happens it is normally a sign of underlying strength.
To finish on a positive note my account made a new high for the year, up 11.9%. The Nasdaq Composite is up 13.2% and the FTSE 100 6.4%.