By Harry Boxer, The Technical Trader
The stock market indices pushed higher today and extended the 5-day rally. The day started out with a bit of mixed action, and then they had a 3-wave move to new highs on the Nasdaq 100 but failed to confirm on the S&P 500. By midday they had backed off in an orderly fashion indicating the probability of higher prices later on in the afternoon, and that certainly occurred.
The indices moved steadily higher, reaching across 1825 NDX and 1108 SPX. Only in the last 10 minutes did they pull back preventing them from closing at the highs going away.
Net on the day the Dow was up 83.66 at 10,392.90, the S&P 500 up 7.24 to 1106.75, and Nasdaq 100 up 12.53 at 1823.30.
Advance-declines were a little bit better than 2 to 1 positive on the New York Stock Exchange, and 3 to 2 positive on Nasdaq. Updown/down volume was nearly 3 to 1 positive, but total volume was light today, at 950 million shares traded. Nasdaq traded just over 2 billion and had about a 2 to 1 positive volume ratio.
TheTechTrader.com board, however, was narrowly mixed today. There was only one stock on my board up as much as a point, and that was Telestone Technologies (TSTC), up 1.02 to 19.22. In the ultra ETF sector, the Direxion Financial Bull 3x Shares (FAS) jumped 1.12 to 71.79.
Large fractional gainers of note today were Netgear (NTGR), up 50 cents to 24.21, and Canadian Solar (CSIQ), up 40 cents to 24.74. The U.S. Oil Fund ETF (USO) jumped 76 cents to 38.73, and the Direxion Large Cap Bull 3X Shares (BGU) 91 cents to 51.34.
Career Education Corp. (CECO), which we traded today, managed to have a very big session, advancing 3.13 to close at 26.00.
On the downside today there was only one point plus loser, the iPath S&P 500 VIX Short-Term Futures ETN (VXX), which fell 1.10 to 27.84. The UltraPro Short S&P 500 ProShares (SPXU ) lost 71 cents to 35.94, and the Direxion Daily Large Cap Bear 3x (BGZ) 32 cents at 16.79 along with the Direxion Daily Financial Bear 3x (FAZ) down 26 cents to 18.64.
However, after the market closed, the Fed announced the rate hike in the discount rate, and the ultra shorts are moving higher with futures moving lower in the aftermarket as the dollar firmed.
Stepping back and reviewing the hourly chart patterns, the indices were up in the morning, consolidated midday, and then strongly higher in the afternoon as key overhead resistance was tested late in the session only to back off in the last 10 minutes.
We'll see if we get a reversal tomorrow as the indices are now overbought and with the Fed discount rate hike I would not be surprised to see the market pull back for a couple days. In addition, tomorrow is options expiration day, and it should be a wild one.
Good trading!
Harry
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