Yesterday's market action was positive.
After acting out of character on Friday, the Nasdaq Composite added to Monday's positive behaviour by posting a 0.41% gain in above average volume (Point A). Above average trade on a day the market moves higher indicates institutional buying.
I was particularly pleased to see the S&P Midcap 400 break back above 1000 on greater than average volume (Point B).
I was also encouraged by the positive price action of the chip sector (Point C). Semiconductors behaviour is important because it acts as the heart and soul of the Nasdaq. Normally when chips perform well, the Nasdaq normally follows and when the Nasdaq moves up, the general market is normally not far behind.
Leading stocks action was positive.
After Monday and Tuesday's positive behaviour, Friday's 'iffy' action now appears more likely to be a one-off event. If I'm right, the market will now be back on track.
With the elections over, I see no reason why the market shouldn't start working its way higher. My short-term stance is now bullish.
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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