Yesterday's market action was neutral.
The Nasdaq fell 0.8% which on the surface seems pretty harmless, however it did experience a bearish reversal on very heavy volume.
Even though the Nasdaq did pull back, for now it remains above 3000 which is just where we want it to be.
India, Russia and industrial materials outperformed.
Apart from the behavior of couple of companies, leading stocks action was good. Once again we had a bullish divergence which means for a second day in a row, a greater number of high quality equities gained in heavy volume compared to those that fell in heavy volume.
In summary the market is sending mixed messages. On one hand we have positives such as the bullish behavior of leading stocks and leading sectors, but on the other hand we have negatives such as the bearish behavior of the main indexes. I'm hoping today we'll see activity that offers more insights to the markets true intentions and likely direction from here.
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