Yesterday's market action was neutral.
The Nasdaq Composite dropped 0.4% in average volume indicating institutional selling.
India and Russia outperformed and global materials matched the market. Leading stocks behavior was neutral.
The Nasdaq and S&P 600 both have support at their 200 day moving averages. This support has helped the markets to stabilise and consolidate. The 'changing of the guard' continues which means from here we may see a continuation of sideways action. My take still remains that after the consolidation period is complete, the next trend will be upwards.
It's also worth noting that today is day five of an attempted rally attempt and if we see a follow through either today or early next week, it would help confirm that a bottom has most probably been found. For now I continue to be happy sitting tight and waiting for a strong rebound. The key is having faith and patience and constantly reminding yourself that investing is a very long-term game.
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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