Yesterday's market action was positive.
The Nasdaq gained for a third day running adding a further 2.4% to its move and with trading volume coming in average and above on all the indexes it signifies institutional demand for stocks.
It was also good to see the Nasdaq Composite bullishly gapping up at the open and closing the session back above the 2800 level. Ideally from this point if the Nasdaq does pullback I would like to see the 2800 level once again turning into an area of support.
Due to the huge moves and heavy volume we saw yesterday this qualifies it as a day 3 follow through. A follow through is when one of the indexes rises 1.7% or more on volume that is higher than the day previous. Basically it means that the institutional investors that control 75% of future market direction are going ''all in'' and helps confirm a change of trend.
Global materials, India and Russia all outperformed the market. Another positive was like the Nasdaq all three followed through.
Leading stocks acted in a similar bullish fashion to the indexes.
In summary with the positive three days we have just seen I have now shifted my short term stance on the markets back to bullish.
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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