Stock Market Summary Thursday August 9th 2012

Posted by Stephen Sutherland on Thu, Aug 09, 2012 @ 01:45 PM
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Yesterday's market action was positive.

After three days of straight gains, the Nasdaq Composite paused for breath, giving back 0.15% in above average volume (Point A).

Even though the indexes didn't really do that much, it was good to see the Nasdaq finding support at the 3000 level (Point B).

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.

It is too early to say but yesterday's behavior may have been the start of the Nasdaq building a handle which would mean moving sideways for a while. The US tech index has now completed a cup formation (Point C) and may now be ready to complete the pattern with a handle (Point D). On the other hand, it may surprise everybody and keep on moving higher and if it did this latest correction would soon be over (Point E).

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Topics: Stock Market Summary