MARKETS LOOKING FOR DIRECTION
All indexes experienced severe selling the past week. What is remarkable is though that Nasdaq and Small Caps experienced a correction of more than 10%. Significantly, all the indexes closed above the 200 day moving average, and that too in strong volume. We may test the 200 day average again but watch out for rise to 50 day average. This will likely act as resistance and markets will experience pull back to check 200 day MA. Historically, as we saw in February, these pullbacks have turned out to be buying opportunities. But, we may not be out of the woods this easy. Check out our post on Money flow into tech stocks.