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).
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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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