Upcoming Test for the Nasdaq

 

After a 10.7% correction on the Nasdaq and a 9.8% correction on the S&P 500, the market successfully followed through on 10/21/2014 and moved into a confirmed uptrend. The next test everyone is anticipating is the Nasdaq reclaiming its 50-day moving average. If and when that test is passed, investors will eagerly be waiting for the other major indexes to follow suit.

 

Also, remember not to only use the indexes to gauge the health of the market. Pay close attention to your portfolio, how leading growth stocks are reacting, and the number of stocks in the MarketSmith Growth 250.

 

Even on days when we pull back, there are plenty of indicators that will point us in the direction of the leaders. One of our favorites here in-house is the blue dot, which indicates that the RS line is at a new high:

 

If you have any questions, please contact the MarketSmith Team at (800) 424-9033.


Best Returns,


The MarketSmith Team

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