Yesterday's market action was neutral.
Yesterday I said: ''The support (for the Nasdaq Composite) 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 stocks.''
It appears I may have been right because yesterday the Nasdaq was down as much as 1.9% before institutional buyers stepped in to aggressively buy.
The big players started their buying spree as soon as the Nasdaq hit 2900 and continued to purchase equities all the way up to the close. The Nasdaq ended the day with a 0.4% loss.
The global materials sector, India and Russia all underperformed. Leading stocks behavior was neutral.
It's now more obvious that at the end of last week the market changed its personality. The correction that began on the 27th March is probably going to continue - but how long it will last and how deep it will be is anybody's guess.
Even though it's not pleasant in the short-term, what is happening right now is perfectly normal and natural. The key as always is to think long-term and remind yourself that correction periods always pass. Have faith, patience and you'll be fine.
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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