Yesterday's market action was positive.
The Nasdaq Composite gained 0.6% on increasing volume however trade remained below average. It was a constructive day that consisted of mild institutional buying.
The S&P 600 constructively broke back above its 200 day moving average, gaining 1.2% for the day.
On the downside the chip sector failed to break back above its 200 day moving average.
India underperformed, global materials matched the market and Russia outperformed. Leading stocks acted well.
I'm very impressed with how the market has been acting since it bottomed on the 4th of June. Over the last six day it's been quietly consolidating and in the last three days volatility has dropped which is another good sign.
In my mind the probability has increased significantly that we have found a bottom to this present retracement however if it's anything like past correction periods, it is likely to take some time to get back to the highs it was making on the 27th March when this present pullback period began.
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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