Yesterday's market action was positive.
After pulling back at the open it was good to see the Nasdaq Composite reversing course and gaining for a third day running; adding a further 0.8% to its move. On the downside volume was below average.
I was also pleased to see the Nasdaq ending the day at 2895 and above its previous resistance level of 2883. Ideally from this point if the Nasdaq does pullback I would like to see the 2883 level turning into an area of support.
Also on the upside the chip sector ended the session back above its 200 day moving average.
The Nasdaq 100 outperformed the other indexes, this is positive as it was the 100 leading the charge before the correction began.
Global materials, India and Russia underperformed the market. Leading stocks continue to act well.
Yesterday's positive behaviour has created even more probability that the correction could be over and that now the market is ready to move higher again. Ideally from this point I would like to see the Nasdaq making a play to get back above its 50 day moving average. If it managed to pull this off, it would give me more confirmation that the recent correction is over.
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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