Yesterday's market action was negative.
Yesterday was day seven of a new rally attempt and still no follow through.
The Nasdaq Composite dropped 1.2% on above average volume indicating institutional selling. The fall also sent the Nasdaq back below its 50 day moving average.
This type of behavior is not in keeping with recent positive activity meaning the market may have changed its personality. Due to this my stance in the short-term has shifted to neutral.
The global materials sector, India and Russia all underperformed the market.
The only bright spot noticed came from the behavior of leading stocks. A greater number of quality equities gained in heavy volume versus those that fell in heavy volume. When this happens and the market falls, it's called a bullish divergence.
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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