The stock market indices had a very tough session after a quick pop at the opening, a pullback, and then a spike up on some positive economic news. That was it for the day. Actually, that caused a double-top on the S&P 500 near the 1229-30 zone. At that point they sold off sharply to 1214, bounced to 1220, and then rolled over hard in the afternoon to 1205 before bouncing around. They then slipped into the close near the session lows on the S&P 500, with similar action on the Dow and Nasdaq.
Net on the day, the Dow was down 119.96 at 11,493.57, just a few points off the low. The S&P 500 was down 14.47 at 1204.42, less than a point off the low. The Nasdaq 100 was down 21.96 at 2219.05, 2 points off the low.
Advance-declines were nearly 3 to 1 negative on the New York Stock Exchange, and 4 to 1 negative on Nasdaq. Up/down volume was 4 1/2 to 1 negative on New York, with a total volume right at 1 billion shares traded. Nasdaq traded 1.7 billion shares, but 1.4 billion of it was on the downside, nearly a 5 to 1 negative volume ratio.
It was a very bad day technically as a topping pattern and rollover may have taken place. We’ll see if we can hold the moving averages on the hourly charts. That’s the last bastion of support here near the 1200 range. If they take out the 1196-1200 zone, I think this rally is over.
TheTechTrader.com board was mostly lower, as you can imagine, but there were quite a few of the stocks that we traded today on the long side that acted well. Mitek Systems Inc. (MITK) absolutely exploded right at the opening and got up to 12.35, a new all-time high. That's nearly 80% higher than where it was just a week and a half ago, so a fantastic move there. It closed up 64 cents to 11.59 today. CIENA Corp. (CIEN) was up 2.47 to 14.71, or 21%, on earnings. Spreadtrum Communications Inc. (SPRD) advanced 1.51 to 19.18, and Liquidity Services, Inc. (LQDT) was the star of the day, up 7.30 to 31.30.
The ultra-short ETFs did well today. The Direxion Daily Small Cap Bear 3X Shares (TZA) jumped 2.60 to 42.91, the VelocityShares Daily 2x VIX ST ETN (TVIX) 1.33 to 51.13, and the Direxion Daily Financial Bear 3X Shares (FAZ) 3.25 to 54.54.
In addition, UTi Worldwide Inc. (UTIW) was up 1.78 to 15.32, Glu Mobile, Inc. (GLUU) jumped 36 cents to 3.41, or 12%, and Shuffle Master Inc. (SHFL) rose 1.15 to 10.01, along with Blue Coat Systems Inc. (BCSI) up 1.35 to 16.03, and Datalink Corp. (DTLK) 77 cents to 9.43.
There were some small fractional gainers, but many multiple-plus losers.
On the downside, some of those losers included Apple Inc. (AAPL), down 3.80 to 381.03, First Solar, Inc. (FSLR) down 3.04 to 96.94, Goldman Sachs (GS) 4.06 to 112.16, Travelzoo Inc. (TZOO) 1.13 to 35.39, MICROS Systems, Inc. (MCRS) 1.10 to 46.56, and Molycorp, Inc. (MCP) 2.03 to 54.49.
In addition, International Business Machines Corp. (IBM) gave back 1.58 to 170.33, and InterDigital, Inc. (IDCC) lost 1.09 to 69.31.
Also, ultra-long Direxion Daily Small Cap Bull 3X Shares (TNA) dropped 3.12 to 45.79. It was obviously down in a negative market today.
Stepping back and reviewing the hourly chart patterns, the indices were up early in the morning after some economic news, but then it was downhill for the rest of the day, dropping on the NDX from 2264 all the way down to 2217, and closing at 2219, barely off the low. The S&P 500 slipped back from 1229 high to 1204 low, and closed right there.
So, this was a very bad day for the indices indeed. We’ll see what kind of follow-through we get tomorrow.
Good Trading!
Harry
Net on the day, the Dow was down 119.96 at 11,493.57, just a few points off the low. The S&P 500 was down 14.47 at 1204.42, less than a point off the low. The Nasdaq 100 was down 21.96 at 2219.05, 2 points off the low.
Advance-declines were nearly 3 to 1 negative on the New York Stock Exchange, and 4 to 1 negative on Nasdaq. Up/down volume was 4 1/2 to 1 negative on New York, with a total volume right at 1 billion shares traded. Nasdaq traded 1.7 billion shares, but 1.4 billion of it was on the downside, nearly a 5 to 1 negative volume ratio.
It was a very bad day technically as a topping pattern and rollover may have taken place. We’ll see if we can hold the moving averages on the hourly charts. That’s the last bastion of support here near the 1200 range. If they take out the 1196-1200 zone, I think this rally is over.
TheTechTrader.com board was mostly lower, as you can imagine, but there were quite a few of the stocks that we traded today on the long side that acted well. Mitek Systems Inc. (MITK) absolutely exploded right at the opening and got up to 12.35, a new all-time high. That's nearly 80% higher than where it was just a week and a half ago, so a fantastic move there. It closed up 64 cents to 11.59 today. CIENA Corp. (CIEN) was up 2.47 to 14.71, or 21%, on earnings. Spreadtrum Communications Inc. (SPRD) advanced 1.51 to 19.18, and Liquidity Services, Inc. (LQDT) was the star of the day, up 7.30 to 31.30.
The ultra-short ETFs did well today. The Direxion Daily Small Cap Bear 3X Shares (TZA) jumped 2.60 to 42.91, the VelocityShares Daily 2x VIX ST ETN (TVIX) 1.33 to 51.13, and the Direxion Daily Financial Bear 3X Shares (FAZ) 3.25 to 54.54.
In addition, UTi Worldwide Inc. (UTIW) was up 1.78 to 15.32, Glu Mobile, Inc. (GLUU) jumped 36 cents to 3.41, or 12%, and Shuffle Master Inc. (SHFL) rose 1.15 to 10.01, along with Blue Coat Systems Inc. (BCSI) up 1.35 to 16.03, and Datalink Corp. (DTLK) 77 cents to 9.43.
There were some small fractional gainers, but many multiple-plus losers.
On the downside, some of those losers included Apple Inc. (AAPL), down 3.80 to 381.03, First Solar, Inc. (FSLR) down 3.04 to 96.94, Goldman Sachs (GS) 4.06 to 112.16, Travelzoo Inc. (TZOO) 1.13 to 35.39, MICROS Systems, Inc. (MCRS) 1.10 to 46.56, and Molycorp, Inc. (MCP) 2.03 to 54.49.
In addition, International Business Machines Corp. (IBM) gave back 1.58 to 170.33, and InterDigital, Inc. (IDCC) lost 1.09 to 69.31.
Also, ultra-long Direxion Daily Small Cap Bull 3X Shares (TNA) dropped 3.12 to 45.79. It was obviously down in a negative market today.
Stepping back and reviewing the hourly chart patterns, the indices were up early in the morning after some economic news, but then it was downhill for the rest of the day, dropping on the NDX from 2264 all the way down to 2217, and closing at 2219, barely off the low. The S&P 500 slipped back from 1229 high to 1204 low, and closed right there.
So, this was a very bad day for the indices indeed. We’ll see what kind of follow-through we get tomorrow.
Good Trading!
Harry
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