Yesterday's market action was neutral.
After surging 1.8% on Tuesday, the Nasdaq Composite gave back 0.37%. Volume came in a touch heavier than the previous session but was below average.
This price and volume activity indicates mild institutional selling which is not ideal when a market is attempting to end a correction.
Even though the Nasdaq did pull back, for now it remains above 3000 and its 50 day moving average, which is just where we want it to be.
India and Russia underperformed and industrial materials outperformed. Leading stocks action was good. More leaders gained in heavy volume compared to those that fell in heavy volume. When this happens on a market down day, it's known as a bullish divergence.
It looks like the materials sector may have found a floor and is on its way back up. However, just like the general market, India and Russia are yet to make a confirmation that their corrections have found a floor.
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