Stock Market Summary Tuesday 9th October 2012

Posted by Stephen Sutherland on Tue, Oct 09, 2012 @ 09:44 AM
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Yesterday's market action was negative.

The Nasdaq Composite fell 0.76% in extremely light trade due to the Columbus Day holiday (Point A).

As I mentioned on Saturday, this pullback does not surprise me because recently guests on financial shows such as CNBC have been getting very bullish. When that happens it makes me nervous because usually it means we are going to head lower.

Leading stocks action was negative. Market leader Apple fell for a second day in a row in above average volume.

After seeing the market continue to act as I suspected, my shorter term outlook has changed to bearish. Even though I'm bearish in the short-term, I expect this weakness to be short lived and that's why I remain fully invested.

From here, I'm paying 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