Yesterday's market action was neutral.
On day five of a new rally attempt, the Nasdaq bearishly reversed after being up as much as 1.3% intraday. It ended the session with a 0.13% gain. Trading volume came in above average.
On a positive note although the Nasdaq and S&P 600 both bearishly reversed both remain above their all important 50 day moving averages.
The global materials sector, India and Russia all outperformed the market. Leading stocks action was positive.
In summary even though the general market has been acting better lately, I'd still like to see a successful follow through sometime this week. A follow through 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. Follow throughs with the highest chance of success occur on days four to seven of a new rally attempt. Today is day six.
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