Yesterday's market action was positive.
The Nasdaq Composite dropped 0.4% and even though volume did increase slightly technically giving us a mild distribution day it still came in below average indicating a reluctance to sell from institutional investors (Point A).
Russia and global materials outperformed, India underperformed.
Leading stocks action was positive. A greater 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 down day, it is classed as a bullish 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 make another attempt at breaking back through the tough resistance area of 3000 (Point B), sometime in the next few weeks.
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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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