Yesterday's market action was positive.
The Nasdaq Composite gained 1.2% on below average volume.
Rather than assuming institutional investors were reluctant to buy, my take is that trade was below average due to the markets being closed on Monday.
The chip sector outperformed, helping the SMH (semiconductor ETF) to break back above its 200 day moving average.
Many of the leading stocks in the global materials sector 'followed through' which is probably a confirmation that this sector is back on the up.
India, Russia and global materials outperformed.
Leading stocks behavior was positive.
Unfortunately yesterday's gains in the broad indexes were not big enough to constitute a follow-through rally confirmation; however the collective behavior of the market, sectors and stocks was a step in the right direction.
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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