Yesterday's market action was negative.
The Nasdaq fell 1.1% in average volume signaling institutional selling. When the big players sell it makes the market weaker and prone to more falls.
It was the eighth day of institutional selling since the Nasdaq topped out on the 27th March.
The global materials sector, India and Russia all underperformed. Leading stocks behavior was neutral.
The market remains weak but for now the Nasdaq still remains above its temporary floor of 2900. It's currently trading at 2902 which means just a small drop today would violate this key support area. If it does drop below 2900, there is fresh support at 2888, 2878 and 2862. That means just a fraction below where the Nasdaq is currently trading, there is a thick wall of support.
When viewing a weekly chart of the Nasdaq, it looks like it's built a bullish handle. Another positive comes from a contrarian's standpoint to the present market sentiment. The messages from the mainstream media and financial media are extremely bearish which is unfortunately helping investors fear levels to escalate. This usually happens when the market is close to a bottom.
The key is to have faith that the market will eventually bounce back and keep thinking long-term. Using these two coping strategies will help you through this difficult market period.
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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