Yesterday's market action was positive.
After surging 2.3% on Wednesday, the Nasdaq Composite added a further 0.7%. Volume increased from the day previous and came in just above average indicating institutional buying.
The broad move helped the S&P 600 string together it's third up day in a row and help it get back above its 50 day moving average.
It was also good to see the chip sector surging higher and on above average volume.
Industrial materials, India and Russia underperformed.
Leading stocks action was positive.
Even though we've just had two decent days in a row, I'd still like to see a successful follow through sometime early next week. This is when one of the main indexes jumps over 1.7% on increased trading volume.
A follow through is not essential to confirm a new uptrend but they do provide a lot of weight and significance when they occur. The best ones happen on days four to seven of a new rally attempt. Yesterday was day two, today day three and Monday is day four.
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