Stock Market Summary Wednesday May 16th 2012

Posted by Stephen Sutherland on Wed, May 16, 2012 @ 11:31 AM
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Yesterday's market action was negative.

The Nasdaq bearishly reversed giving back earlier session gains, ending the day with a 0.3% loss in above average volume. It also broke through its first key support level of 2900.

India outperformed but global materials and Russia underperformed.

Leading stocks behavior was positive. A greater number of leading stocks gained in heavy volume versus those that fell in heavy volume. When you see this happening on a market down day, it's called a bullish divergence.

In summary with leading stocks acting better, it could be a sign the market is close to a bottom. It's also comforting to know that the Nasdaq has a thick wall of support just below where it is currently trading. The market will eventually bounce back and as long as you share my belief and keep thinking long-term, you'll cope much better during this difficult market period.

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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Topics: Stock Market Summary