Yesterday's market action was positive.
The Nasdaq Composite surged 1.5% helping it break back above its all important 50 day moving average (Point A). Unfortunately the level of trading volume took the edge off the day, coming in well below average and indicating a lack of demand from institutional investors (Point B).
However it was good to see the Nasdaq's big brother, the Nasdaq 100 also breaking back above its 50 day moving average (Point C).
Russia, India and global materials outperformed. Leading stocks action was negative. An equal number of leaders were rising in heavy volume compared to those that were falling in heavy volume. When you see this happen on a market up day, it is classed as a bearish divergence.
The market continues to act well. My opinion remains that from these levels, the market is more likely to head higher than lower. I expect the Nasdaq Composite to probably take another stab at breaking back through the tough resistance area of 3000 (Point D), sometime in the next few weeks.
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