Stock Market Summary Friday August 17th 2012

Posted by Stephen Sutherland on Fri, Aug 17, 2012 @ 10:39 AM
describe the image

Yesterday's market action was positive.

The Nasdaq Composite gained 1.04% in above average volume (Point A).

When volume is above average and the market makes a strong gain, it means institutional investors are aggressively buying stock, helping to strengthen the market and make it prone to further price rises.

Leading stocks action was neutral.

Yesterday the Nasdaq broke out of a bullish cup-with-handle formation (Point B). With volume coming in above average (Point C) on the breakout, it means the probability the breakout will be successful has increased. Not all breakouts work out and some reverse just after making their move.

What ideally we want to see now is a continuation of this breakout over the next few trading days and hopefully breaking through the resistance at 3085 (Point D) and 3134 (Point E) or in the very least holding onto most of Thursday's gains.

Bearish behavior would be selling off in heavy trade. From how the market is currently acting, the breakout should prove successful but as always we have to take it one day at a time. My thinking is, so far so good.

To view the funds I hold in my ISA portfolio click here


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.

Find out where an expert invests

Are you an ISA or SIPP investor with over £100,000 actively invested? Are you looking for better returns but are unsure which funds to invest in? Our personal investment service allows you to buy the same funds as our star-performing investor. You find out where he invests, keep full control of your account, enjoy a close relationship with a trusted expert, and benefit from the potential for attractive long-term returns.

To find out where an expert invests >>

To download our brochure >>

Topics: Stock Market Summary