Stock Market Summary Saturday 6th October 2012

Posted by Stephen Sutherland on Sat, Oct 06, 2012 @ 11:07 AM
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Yesterday's market action was neutral.

The Nasdaq Composite bearishly reversed, falling 0.42% on below average volume (Point A). In a way this does not surprise me because I have noticed that recently, especially yesterday, that on financial shows such as CNBC, the guests have been getting very bullish. When that happens it usually means we are going to head lower.

Leading stocks action was positive. A greater number gained in above average volume compared to those that dropped in above average volume. When this happens on a market 'down' day, its known as a bullish divergence.

After seeing the market bearishly reverse yesterday, noticing too much 'optimism' coming from the financial media and spotting market leader Apple falling in above average volume, my shorter term outlook has changed. I have shifted my short-term stance back to neutral. Now I'm paying more attention to the Nasdaq's 50 day average (Point B) and the 3000 level (Point C). These are two areas that I'd expect and want to see institutional support 'if' the market should drop further from here.

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Topics: Stock Market Summary