Yesterday's market action was positive.
The Nasdaq Composite bearishly gapped down at the open and ended the day down 0.6%. Volume came in above average (Point A).
Selling on heavy volume will have weakened the market, however institutional investors did step in to support the US tech index as it approached the 3150 level, pushing it off its intraday lows. This should be seen as constructive behaviour and does appear to be a common occurrence of late (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.
Although the market did pullback yesterday we did see a bounce off its intraday lows, if from this point the market does pullback further I would like to see the big players stepping up to the mark and supporting the market around the 3134 level on the Nasdaq (Point C).
Leading stocks action was positive.
Both the Nasdaq and the 600 acted well for the week. Although the Nasdaq did pullback slightly it still ended the week above its March high of 3134 (Point C). It was a similar picture with the S&P 600, even though it lost more than the Nasdaq it still finished the week above its previous resistance of 472 (Point D). Ideally from this point if these indexes do pullback further, I'd like to see these former resistances becoming support.
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