Yesterday's market action was positive.
On Monday the Nasdaq gained almost 0.5% and with average trading volume signifies institutional buying. Another good sign was the Nasdaq ended the session back above its 200 day moving average.
It was good to see the Nasdaq 100 outperforming the other indexes as it was the 100 leading the charge before the correction began. I was also pleased to see the big players stepping up to the mark as the 100 approached its 200 day moving average.
Global materials matched the market, India and Russia outperformed.
Leading stocks behaviour was negative, although the Nasdaq gained for the day a larger number of leaders lost ground on heavy volume than gained, giving us a bearish divergence.
It looks like Friday's sharp fall was probabily a shakeout to scare out the weak hands. From this point I would like to see more up days on above average volume then to complete the picture a follow through on one of the main indexes. This would help confirm that we've probably hit a bottom, meaning we are ready to start heading back higher again.
With the markets taking big hits the last two months it may take time to heal so we may find volatility remaining high, but reminding yourself that you are a long-term investor and that portfolio losses are temporary does help.
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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