Yesterday's market action was negative.
The Nasdaq Composite fell 0.43% in above average trade indicating institutional selling (Point A). There was however a bullish divergence with price and volume activity. Normally on such large volume the loss would have been greater which means the smarter institutional investors were probably buying into the selling.
Leading stocks action was neutral. Market leader Apple acted well for a second day in a row, this time making a slight gain versus the markets loss. This tells me that the market will probably find support soon.
Even though the market has suffered four days of straight losses, all is well. If something had changed, leading stocks would be dropping like stones and this is something I am yet to see.
Hopefully the falls will have helped remove the excessive optimism that had built up. I'm still expecting to see support arrive soon and should the market fall further, I'd like to see a lot of aggressive buying between 3000 and 3040 (Point B).
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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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