Yesterday's market action was neutral.
Once again the Nasdaq pulled back intraday but after reversing course managed to end the day almost flat.
At the moment the Nasdaq appears to be hitting some resistance around the 2950 level as yesterday was the third day in a row it was pushed down as it hit this level.
The S&P 600 ended the day in the black after reversing course intraday. On the downside we did see some selling in the final 30 minutes.
The global materials sector underperformed but India and Russia outperformed. Leading stocks action was positive. With the Nasdaq not making much ground yesterday, it was encouraging to see a greater number of top stocks rising in heavy volume versus ones that were falling. When this happens it is known as a bullish divergence.
In summary although the Nasdaq did not make much ground it does appear to have some solid support just below were it is currently trading. Ideally from this point if we do see the Nasdaq pulling back I would like to see the institutional investors stepping up to the mark and buying around the 2900 level.
Although correction periods are not pleasant to sit through we must remember they are needed every so often to flush out the weak hands. As long as you remain in the game and have faith and patience they always eventually pass.
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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