Yesterday's market action was negative.
The Nasdaq fell another 1% making it four down days in succession. Unfortunately no support was found at the 3000 level and volume came in above average indicating institutional selling. The next major area of support on the Nasdaq is 2880-2900.
India, Russia and industrial materials underperformed.
Leading stocks action was mixed.
Yesterday the markets personality changed. The bearish nature of yesterday's activity means the market probably needs to correct further before it starts to head back higher.
The good news is that if it does go down further, the Nasdaq will probably find some very solid footing at the 2880-2900 price area which is just 2.4% below where it is currently trading. It's also good that this retracement period will also help to flush out all those investors who arrived late to the party.
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