Yesterday's market action was neutral.
The Nasdaq Composite dropped 1.7% on below average volume. The low volume indicates a reluctance to sell from institutional investors however the Nasdaq did unfortunately suffer it's second bearish reversal in less than a week.
The S&P 600 also experienced a bearish reversal and with trading volume coming in above average indicates institutional investors were selling small cap stocks. Another negative was the 600 ended the day below its 200 day moving average.
India, Russia underperformed but global materials outperformed.
Leading stocks performed well. On a day when the market dropped, almost half as many stocks were being bought as were being sold on above average volume.
At the moment the Nasdaq appears to be hitting resistance at its previous highs around 2882 made on the 29th May. Ideally from here I would like to see it pushing higher and clearing this level.
There were some positives and some negatives to yesterday's action, but due to the low volume on the Nasdaq and leading stock action I remain with my short-term bullish outlook.
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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