Yesterday's market action was neutral.
The Nasdaq Composite gained 0.74% in below average volume indicating a reluctance to buy from institutional investors (Point A).
The US tech index unfortunately failed to break though the overhead resistance found at the 3000 level (Point B).
This was the third attempt in the last month that the Nasdaq has tried to get back above this key technical level and failed (Point C).
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.
As I mentioned recently, for the last four weeks, the Nasdaq has been trading in a sideways corridor. The low of the corridor is 2837 and the high 3000 (Point D). With trade volumes being tame yesterday indicating a lack of buying commitment from the big players and leading stocks acting bearish, for now the market may struggle to break out of its current sideways range.
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