Yesterday's market action was positive.
On Friday the market took off like a rocket, with the Nasdaq and S&P 600 both gapping up and surging 3.0%. With trading volume coming in above average on the Nasdaq (Point A) and S&P 600 (Point B) this indicates institutional buying. That's positive because when institutional investors buy it strengthens the market.
Yesterday I said ''I'd ideally like to see the Nasdaq break back above its 50 day moving average on above average volume.''
The good news is the Nasdaq composite did exactly that, breaking above this key level (Point C) and on above average volume.
Russia, India and global materials all outperformed.
Leading stocks acted in a similar bullish fashion to the indexes with the vast majority performing extremely well.
In summary over the last 4 days the Nasdaq has had three up days and one down. That tells me the recent downtrend may be over and due to this I have now shifted my short term stance on the markets back to bullish.
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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