Yesterday's market action was neutral.
The Nasdaq Composite dropped a further 0.76% on increasing volume indicating institutional selling.
It was also disappointing to see no support coming from the big players as the Nasdaq passed through the 3000 level and the all-important 50 day moving average.
Yesterday's loss on the Nasdaq was mitigated for a second day in a row by below average trading volume. This indicates mild institutional selling as opposed to heavy institutional selling.
Industrial materials and India outperformed and Russia underperformed.
Leading stocks action was not good. Some of the markets best stocks such as Apple and Priceline.com took big hits.
In summary I believe that the market will find a bottom after the market's best stocks have found a floor. I also believe that the three sectors I watch closely will also bottom before the market. When that will happen nobody knows, however I do see this present correction as normal and natural and nothing to get concerned about.
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