Stock Market Summary Thursday May 3rd 2012

Posted by Stephen Sutherland on Thu, May 03, 2012 @ 10:39 AM
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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.


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Topics: Stock Market Summary