By Harry Boxer, The Technical Trader
The indices had a fantastic finish to the week with a very strong rally late in the session, and the best part about it is that it came without any particular good news. In fact in the face of extremely negative labor news this morning, the market was able to turn it around and explode off the early morning lows. It was slow at first in what appeared to be possible bear flags forming, but they held and then accelerated to the upside. When they broke out mid-day they then exploded in a 5-wave sharp rally to finish at the highs for the day going away.
Net on the day the Dow was up 259, and rallied about 517 off its low. The S&P 500 rallied from 818 to 879, a turnaround of more than 60 points, ending up 30.85 on the day, and the Nasdaq 100 jumped from 1096 to 1180, an 84-point rally, closing at 1177, up 50.12. The Philadelphia Semiconductor Index (SOXX) closed up 5.92 at 192.56.
The technicals also reversed sharply to the upside. Advance-declines ended 22 to 9 positive on New York and 19 1/2 to 8 1/2 on Nasdaq. Up/down volume had a very positive ratio today of about 6 to 1 on New York on total volume of more than 1.6 billion. Nasdaq traded just under 2.2 billion and had a 6 1/2 to 1 positive volume ratio.
TheTechTrader.com board was mostly higher. Portfolio position SunPower (SPWR) jumped 4 points off the morning lows and closed up 2.63, a nice reversal on nearly 1 1/2 million shares traded. Apple (AAPL) jumped 2.59 on the day, AVAV was up 2.03.
Ags were strong with CF up 2.45, POT 3.79 and MOS up 1.28.
RIMM advanced 2.29, RMBS 1.10. UAUA was up 1.33 & DAL +$1.48 in a very strong airline sector today.
Newly added portfolio position UEPS jumped from 9.37 to over 11, closing at 10.99, up 1.29 on more than 2 million, the heaviest volume all year.
MS came back from mid-day lows under 14 to close at 15.72, up 78 cents, on 36 million shares traded. Also in the financial sector BAC jumped 90 cents today on 137 1/2 million shares.
Newly added portfolio position EBS jumped 2 1/2 points off the morning low and closed at 22.86, up 94 cents on the day on 1 million shares.
Recent Chart of the Week COGT jumped 87 cents at 13.49. AFAM came back 1.38 today at 44.89.
In ETF action: BGU jumped 3.08 to 33.38, DIG at 25.50 was up 1.24 today. Portfolio position FXI jumped 2 points to 27.85, on 55 million shares.
The short ETF instruments today obviously got hammered when the market rallied sharply, with BGZ losing 8.57, QID 6.20, and SDS 6.72,
Stepping back and reviewing the hourly chart patterns, the indices plunged early in the morning on a very negative labor report, but held the weekly support lows and rallied sharply in the afternoon to complete a successful retest and closed back above the declining tops line of the last 4 weeks, particularly on the Nasdaq 100.
Overhead resistance around 1200, if taken out, could lead to much higher levels on the NDX, and a move over 900-910 zone on the S&P 500 could also do well. But today's late rally on no news indicated that the market was exhausted to the downside and augurs well for next week.
Good trading!
Harry
No comments:
Post a Comment