Stock Market Summary Friday May 18th 2012

Posted by Stephen Sutherland on Fri, May 18, 2012 @ 10:30 AM
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Yesterday's market action was negative.

The Nasdaq Composite plummeted 2.1% in heavy volume signaling institutional selling.

Russia underperformed and global materials and India outperformed. Leading stocks behavior was neutral.

In summary nine of the last eleven trading days have been market loss days. As I mentioned yesterday, with having so many down days in such a short period of time, I'm expecting a relief rally soon.

Yesterday investors fear heightened and from a contrarian point of view, that's good. The financial media are extremely bearish, which is another good sign that a reversal is near.

Indexes and sectors, for example semiconductors, are at or approaching their 200 day moving averages which should provide solid support and are often a perfect place for institutional investors to step in and aggressively buy.


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Topics: Stock Market Summary