Yesterday's market action was positive.
The Nasdaq Composite closed flat however during the session it did test its 50 day moving average and the test was successful. The Nasdaq 100 acted likewise, bullishly reversing off its 50 day moving average and closing the day in the upper half of its trading range.
The S&P 600 unfortunately fell back below its 50 day moving average however its behavior was improved due to the fall being accompanied by tame volume.
India, Russia and global materials underperformed. Leading stocks action was mixed.
My short-term stance has changed to neutral due to noticing many stocks in sectors such as India, Russia and global materials having overhead resistance just above where they are currently trading. This may result in a market pullback. However, I still remain impressed with how the market has been behaving since the 1st June and remain expectant that the market will recover over the second half of the year.
The objectives over the next few weeks is for key sectors such as the three mentioned, to break through their areas of resistance and I'd also like to see the Nasdaq Composite and its big brother the Nasdaq 100 remain above their 50 day moving averages.
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