Yesterday's market action was positive.
The Nasdaq Composite gained 0.6% on decreasing volume which generally indicates that institutional investors were reluctant to buy (Point A). However, because the market managed to extend on the 3% made Friday (Point B), the behaviour was bullish.
The S&P 600 did better adding 0.8% on increased volume indicating further institutional buying (Point C).
Russia outperformed, India and global materials underperformed.
Leading stocks action was mixed.
The market is acting much better as each day passes, it looks more and more likely that the bottom the Nasdaq Composite hit on the 1st July (Point D) will eventually turn out to be the low of this present correction.
However, the market is now at a point where it is facing some strong headwinds. For example, the Nasdaq is closing in on the 3000 level, an area of major resistance (Point E) which I expect may take some time to break through.
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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