Yesterday's market action was positive.
The Nasdaq Composite gained 0.8% on average volume (Point A) indicating for a third day in a row that institutional investors were buying.
The move pushed the US technology index a step closer to the tough resistance level of 3000 (Point B), a level I've recently mentioned in my updates.
Russia and global materials outperformed and India matched the market's performance.
Leading stocks action was negative.
A greater number of leaders were falling in heavy volume compared to those that were rising in heavy volume.
When you see this happen on a market up day, it is classed as a bearish divergence.
With the Nasdaq closing in on some strong headwinds, it may struggle once again to break above the magic 3000 level.
The thing to remember is that every time an index attempts to break through an area of strong resistance, it makes the resistance weaker and the last time it hit this resistance was on the 5th July (Point C) when it struggled to get past 2988.
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