Nasdaq Leads Mixed Session To Close Over 2000
The indices ended mixed on the session, but it was a difficult morning with a firm afternoon.
The markets started out with a slight firming to the upside, and they came down immediately, bounced back and tried to match yesterday's high on the Nasdaq 100. But the fell short on the S&P 500, and then fell quite sharply to the lows for the session. After a retest was successful, the indices then started a mid-morning rally that took it into late afternoon, with the Nasdaq 100 breaking out to new 4-month highs, taking out 2000 resistance. The S&P 500 barely made it over the initial morning highs and fell far short of the highs two weeks ago, in the lows 1420s, causing a negative divergence. They backed off in the last hour to close mixed on the day.
Net on the day the Dow was down just under 45 and the S&P 500 down about 1/2. The Nasdaq 100 was up 3.59 to 2000.61, and the Philadelphia Semiconductor Index (SOXX) was firm all day, closing up 3.23, helping the NDX.
The technicals were slightly positive on New York where there were 200 more advancers than decliners , and up/down volume was about 6 to 5 positive. Total volume was a light 1.17 billion. Nasdaq had a little better performance, although advance-declines were only 132 issues positive. Up/down volume was about 11 to 7 positive on total volume of about 1.8 billion.
TheTechTrader.com board, however, had a very strong day today, although many stocks did give it back towards the end of the day. Leading by far and away today was Canadian Solar (CSIQ) on a fantastic earnings report, gapping up huge and running all day, at one point up 11 points, closing up 6.68 on 16.4 million at 40.78.
Other stocks of note, Energy Conversion Devices (ENER) continued its huge advance after last week's big gap-up, closing at 55.20, up 3.58 on 7 Ã,½ million traded. That's near its all-time high at 57.84 range, so it's coming up on key overhead resistance.
Other point-plus gainers include Brigham Exploration (BEXP), a recent Chart of the Week, which was up 1.14. DryShips (DRYS) gained 1.56 and portfolio position Excel Maritime (EXM) 1.58, but TBS International (TBSI) was down 2.89 on a financing announcement.
Other solar energy stocks also had good sessions. Portfolio position Solarfun (SOLF) at 16.19 was up 1.25, although that was about 50 cents off its earlier high. Trina Solar (TSL) was up 1.41 to 43.01. JA Solar (JASO) was up 1.60, and Ascent Solar (ASTI) up 97 cents.
Sigma Designs (SIGM) had a good session today, up 89 cents to 21.80. One of last week's Charts of the Week, General Steel (GSI), was up 1.20 to 12 on a steady afternoon surge.
On the downside, there were no point-plus losers other than TBSI. Chindex (CHDX) fell 35 cents, China Natural Resources (CHNR) 53 cents, Home Inns & Hotels (HMIN) 67 cents, and China Finance Online (JRJC) down 30 cents, all in the Chinese sector today.
Washington Mutual (WM) at 9.88 fell 37 cents, closing under 10 for the first 2 months
Stepping back and reviewing the hourly chart patterns, the indices had a solid afternoon rally that took the Nasdaq 100 through the key 2000 resistance level, but nominally so, and then it pulled back to close right at it. The SPX, as indicated earlier, had a difficult time getting over this morning's early high and certainly is a long way from the highs of two weeks ago, causing a negative divergence that could lead to some pullbacks over the next few days.
We're expecting a pullback anyway, as cycle points in this time frame and other various indicators indicate we could see a pullback beginning at any point. But the Nasdaq certainly refuses to give in yet.
Harry Boxer is a technical consultant to many Wall Street hedge funds and large institutional traders, and author of TheTechTrader.com, a real-time diary of his day, swing and intermediate-term trades. For more of Harry Boxer, sign up for a free 15-day trial to his Real-Time Technical Trading Diary, or sign up for a free 30-day trial to his Top Charts of the Week service.
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