Yesterday's market action was negative.
The Nasdaq fell 1.42% on above average volume (Point A). Above average trade on a day the market moves lower indicates institutional selling.
Leading stocks action was positive. There was only a slightly greater number falling in above average volume compared to those that gained in above average volume. Normally on a down day the results would be more conclusive.
Technically the market looks as though it's in real trouble. However I'm still not convinced. Leading stocks action is one big clue saying things are not as bad as the media are making out and my portfolio behaviour is another clue to say stay calm.
For example, since this latest correction began on the 21st September, even though the Nasdaq has corrected a hefty 9.4%, my account has actually gained over the same period by 0.9%.
If something was wrong, my portfolio would have seriously suffered, probably much worse than the Nasdaq. That tells me that this is probably a shakeout below key moving averages, possibly like the one the Dow had from the 1st to 6th June, earlier this year (Point B). I remain neutral short-term.
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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