Yesterday's market action was negative.
It's fascinating how things can change in the space of a single day. The Nasdaq Composite bearishly reversed plunging 1.26% in above average volume indicating institutional selling (Point A). Behaviour like this, the day after a confirmed follow through is not ideal and could mean the market needs to take another leg down.
It looks like the S&P 600 has some strong resistance at its 50 day moving average (Point B).
Leading stocks action was negative. Market darling Apple's behaviour was a tad concerning. As well as it falling below its 200 day moving average on above average volume (Point C), its RS rating has dropped below 80 (Point D).
With the market selling off hard the day after successfully following through, I've changed my short-term stance to neutral. The way the market behaves over the first few days of next week will be key. If the market can shrug off Friday's reversal, my stance would probably flip back to bullish in the short-term. However if the market weakens, my stance will probably become bearish.
The three day week made the weekly action more difficult to read. It was clear though that the 600 performed better than the Nasdaq, making a small gain after bullishly finding support at its 200 day moving average (Point E).
The Nasdaq unfortunately fell for the week but just like the 600, for now it still appears to have support at its 200 day moving average (Point F).
Please note past performance should not be used as a guide to future performance, which is not guaranteed. Investing in 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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