Stock Market Summary Tuesday May 8th 2012

Posted by Stephen Sutherland on Tue, May 08, 2012 @ 10:23 AM
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Yesterday's market action was neutral.

After two days of institutional selling, the Nasdaq Composite managed to find some support at 2940, unfortunately the rebound wasn't that impressive.

The Nasdaq has a thick wall of support below where its currently trading. The support starts at around 2880 and continues up to 2940. That means if the market does continue to fall, we should see institutional investors stepping in to buy.

The global materials sector matched the market, India outperformed and Russia underperformed.

Leading stocks behavior was neutral.

The market at the tail end of last week appeared to have changed its personality. It looks like the correction that started on the 27th March is going to continue - but how long it will last is anybody's guess.

However, previous to the correction the Nasdaq had a 36% run from the 4th October 2011 and so far the correction is 5.6% in depth. With it running up 36%, it would be perfectly normal and natural for the correction to deepen before it eventually starts heading back in a northerly direction.


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Topics: Stock Market Summary