Yesterday's market action was positive.
Yesterday was day six of a new rally attempt and we are yet to see one of the main indexes follow through. The Nasdaq Composite edged up 0.3% on above average volume.
On the surface its behavior seems unimpressive however when looking at a daily chart, you see it bullishly reverse off its all important 50 day moving average. The S&P 600 also managed to climb back above its 50 day moving average.
The global materials sector, India and Russia all underperformed the market. Leading stocks action was positive.
In summary even though the Nasdaq has yet to stage a follow through, the market is behaving in a constructive manner. The indexes are acting well, trading volume on the indexes is returning, and leading stocks are acting well.
If the market does stage a follow through, I would see it as a bonus. Due to this my short term stance has shifted from neutral to bullish.
Please note past performance should not be used as a guide to future performance, which is not guaranteed. Investing in the Funds should be considered a long-term investment. The value of the investment can go down as well as up and there is no guarantee that you will get back the amount you originally invested.
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