Yesterday's market action was positive.
The Nasdaq Composite ended its four days of selling with a surge of 1.4% on above average volume (Point A).
Greater than average trading volume indicated institutional investors were aggressively buying stock, injecting strength back into the market.
The big move helped the Nasdaq get back above its all important 50 day moving average (Point B).
The big upside move confirmed my previous day's suspicions that we appear to have some solid support at 2840 on the Nasdaq (Point C).
Leading stocks action was positive. Many top stocks have recently been breaking out of sound bases, a classic sign that the market remains healthy.
After yesterday's bullish move in heavy trade, it tells me that this correction is getting itself back on track. My short-term stance has switched to bullish. There is now a greater chance that the Nasdaq may have another stab at trying to punch back above the 3000 level over the next few weeks (Point D).
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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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