Sunday, July 27, 2014

Nasdaq Tests Bulls' Conviction

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The Nasdaq ran into some selling on Thursday and Friday as the market tests the bulls' conviction.  Despite the selling, this index remains in a constructive pattern for higher prices. As always, I would keep an open mind as to where the market may go from here.

The Nasdaq has not strung together four consecutive down days since March, which c
oincidentally marked the beginning of the 2-month spring correction.  Continued selling into Monday and Tuesday could mark the beginning of another correction.  Should the bears fail to materialize again, then I would suspect a new 52-week high will print in quick order.