Yesterday's market action was positive.
Although the Nasdaq dropped 1.30% and volume increased officially giving us a distribution day, this was tempered by extremely tame volume (Point A).
Another positive was the US tech index ended the day off its lows after the big players stepped up to the mark in the final ninety minutes of trading (Point B).
The S&P 600 did pullback below the 450 level which is not ideal but when we take a look at volume we find it dropping off from the previous days and coming in on the tame side (Point C) indicating a healthy pullback.
Russia, India and global materials underperformed.
Leading stocks action was positive. Although the percentage falling was high, when we look closely only two stocks fell on heavy volume signalling a reluctance to sell from institutional investors.
Although the markets did pullback yesterday this was expected, as I stated yesterday: ''it is looking more likely the markets could take a breather at these levels or pullback slightly before heading higher.''
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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