Yesterday's market action was neutral.
The Nasdaq Composite added 0.49% on average volume (Point A) indicating institutional buying. When institutional investors buy, it strengthens the market and makes it prone to further rises.
Over the last 5 days, the Nasdaq has been shuffling sideways and so far has not been able to break through resistance at 3147 (Point B). As I write this though market futures suggest a positive open today which means we may see it break out of this sideways range as early as today.
Leading stocks action was negative. A slightly higher number fell in above average volume compared to those that gained in above average volume. When this happens on a market 'up' day, it's known as a bearish divergence.
Even though leading stocks action was negative, yesterday's index activity has convinced me to change my short-term stance to bullish. Rather than my focus being on support, it's now on resistance and the next major resistance point for the Nasdaq is 3200 (Point C).
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 >>