Yesterday's market action was positive.
On Thursday the market took off like a rocket, with the Nasdaq gapping up and surging 2.17% (Point A). With trading volume coming in above average this indicates institutional buying. That's positive because when institutional investors buy it strengthens the market.
On Wednesday I said ''After yesterday's session the US tech index now stands just 10 points below its former resistance of 3085. Ideally from here it should have another go at trying to push through sometime this week.''
The good news is the Nasdaq composite did exactly that, breaking above this key level (Point B) on above average volume.
It was a similar picture with the S&P 600, it had hit resistance three times at the 465 level (Point C), so it was good to see the smallcaps powering through yesterday.
Leading stocks acted in a similar bullish fashion to the indexes with the vast majority performing extremely well.
In summary after yesterday's session the five month correction now appears to be over (Point D). Ideally if the Nasdaq does pullback from these levels I would like to see the former resistance at 3085 (Point E) becoming support.
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 >>