By Harry Boxer, The Technical Trader
The stock market had another very strong finish to the week, and now is into its seventh week of rallying. The indices hit new rally highs on the Nasdaq 100. The S&P 500, however, fell a few points short and then sold off late in the session along with the NDX, failing to confirm the new NDX highs.
Friday started out with a strong opening. They had a very strong surge in the morning, a late morning consolidation and early afternoon rollover and then a strong snapback after some of the results of the stress test were announced. Late afternoon profit taking, particularly in last 10-15 minutes, pared the gains.
Net on the day the Dow was up 119.23 at 8076.29, the S&P 500 gained 14.31 to 866.23, and the Nasdaq 100 up 28.87 at 1373.28. The Philadelphia Semiconductor Index (SOXX) was up 4.29 to 253.65.
The technicals were positive, with advance-declines ahead by more than 3 to 1 on New York and 2 1/2 to 1on Nasdaq. Up/down volume was more than 3 to 1 positive as well on New York on total volume of just under 1.7 billion. Nasdaq traded more than 2 1/2 billion and had a 4 to 1 positive volume ratio.
TheTechTrader.com board was mixed. On the plus side, it was a very strong day for agriculture stocks, as Potash (POT) gained 4.39 and Mosaic (MOS) 2.75.
Amazon (AMZN) was up 3.85 today, and Wells Fargo (WFC) up 1.31 to 21.40, as financials generally were mixed.
Goldman Sachs (GS) fell 1.51, American Italian Pasta (AIPC) 2.39 and Apple (AAPL) 1.50.
Stepping back and reviewing the hourly chart patterns, the indices rallied strongly in the morning, consolidated and pulled back, but came on strongly in late session trading before a last 10-15 minute bout of profit-taking pared back the session’s big gains. We still maintain that the rally is quite long in the tooth and very much due for a substantial retracement, but momentum still remains unabated and until they reverse them that momentum may carry the indices a bit further.
Good trading!
Harry
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