Yesterday's market action was positive.
On Friday the market took off like a rocket, putting an end to its previous four days of selling. With trading volume coming in above average on the Nasdaq (Point A) and S&P 600 (Point B) this indicates institutional buying. That's positive because when institutional investors buy it strengthens the market.
Leading stocks acted in a similar bullish fashion to the indexes with a massive 100% rising in heavy volume compared to those that were falling in heavy volume.
After yesterday's bullish move in above average trade, it tells me that the market is getting itself back on track. Due to this I've now switched my short-term stance back to bullish. There is now a greater chance that the Nasdaq may have another stab at trying to punch back above the sideways corridor it has been trading in for the last four weeks, the upper resistance level stands at 2988 (Point C).
The Nasdaq now has three up weeks in a row under it's belt adding even more conformation that this latest correction is close to ending. It was good to see the big players stepping up to the mark this week as the Nasdaq approached its 50 day moving average (Point D) ditto for the S&P 600 as it hit its 200 day (Point E).
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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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