Stock Market Summary Friday 7th September 2012

Posted by Stephen Sutherland on Fri, Sep 07, 2012 @ 10:07 AM
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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.

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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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Topics: Stock Market Summary