Yesterday's market action was positive.
The Nasdaq Composite gained 0.74% on below average volume, however the level of trade did increase from the previous day making it a mild institutional buying day (Point A). It was also good to see the Nasdaq Composite bullishly gapping up at the open and finishing the day in the upper half of its trading range.
It was constructive to see the S&P 600 leading the charge on increasing volume after hitting its 200 day moving average on Tuesday (Point B).
Global materials underperformed, India and Russia matched the market. Leading stocks action was neutral.
From this latest action, I think the recent down days on the 21st and 25th (Points C) of this month were both harmless. I also think the market reversed because it would have been too much too soon. Let's remember that when the market corrects, it needs time to mend and this correction is no different.
To further confirm the market is back on track from this point I would like to see the Nasdaq making another play to get back above then stay above its 50 day moving average (Point D).
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