Huge Stock Market Rally
The stock market indices gapped up sharply at the opening as foreign markets were higher. With economic news coming out and interpreted as not being as bad as anticipated, the indices gapped up to resistance, backed off briefly for a few minutes, and then took off in a very explosive early move that saw them reach the session highs in the first couple hours. At that point they pulled back, consolidated, and basically held their own for most of the session, coming on at the close to finish at new afternoon highs on the S&P 500 without confirmation from the Nasdaq 100.
Net on the day, the Dow was up 254.75 at 10,269.47. The S&P 500 was up 30.96 at 1080.29, and Nasdaq 100 up 52.62 at 1820.05.
Advance-declines were positive by 6 to 1 on the New York Stock Exchange and by 4 1/2 to 1 on Nasdaq. Up/down volume was a whopping 28 to 1 positive on New York on total volume of about 1.2 billion and about 22 to 1 positive on Nasdaq on about 2.15 billion. So, a very strong up/down ratio today as the indices and stocks thrust.
TheTechTrader.com board, as a result, was vastly higher. Leading the way today, Google Inc. (GOOG) was up 10.32 at 460.34, Apple Inc. (AAPL) 7.23 at 250.33, Amazon.com Inc. (AMZN) 7.66 at 132.49, Goldman Sachs (GS) 2.81 at 139.74, Transocean Ltd. (RIG) 3.43 at 54.33, Dendreon Corp. (DNDN) 2.40 at 38.24, and Valassis Communications Inc. (VCI) 2.10 at 31.41. Those were the point-plus gainers today on our board.
Burger King Holdings Inc. (BKC) jumped 2.41 at 18.86, and Blue Coat Systems Inc. (BCSI) 2.25 at 21.08. Sunrise Senior Living Inc. (SRZ) had a big percentage gain, jumping 1.46 at 3.67.
Other point-plus gainers included Trina Solar Ltd. (TSL) up 1.33 at 27.11, and Isilon Systems, Inc. (ISLN) up 1.22 at 21.17. IDT Corporation (IDT) snapped back 1.23 at 15.73. Cirrus Logic Inc. (CRUS) jumped 1.28 at 16.38, Cree Inc. (CREE) 1.76 at 55.30, China Automotive Systems Inc. (CAAS) 1.28 at 15.26, and BP Exploration plc (BP) 1.33 at 36.16.
The Direxion Daily Financial Bull 3X Shares (FAS) gained 1.96 to 19.86. There were many other large fractional gainers, too many to mention.
On the downside leading the way were the ultra-short ETFs, which got hammered. Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) fell 4.01 to 34.37, Direxion Daily Small Cap Bear 3X Shares (TZA) 4.30 to 34.11, Direxion Daily Financial Bear 3X Shares (FAZ) 1.83 to 14.90, Direxion Daily Large Cap Bear 3X Shares (BGZ) 1.50 to 14.97, and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) 1.33 to 20.63.
The bulls were totally in control today, and the bears got routed.
Stepping back and reviewing the hourly chart patterns, the indices gapped up at the opening, broke key resistance at 1800 NDX and 1065 SPX, and then ran up to secondary resistance before hesitating pretty much for most of the day. But they consolidated at what appeared to be just above the declining channel tops. This could be very bullish for stocks going forward if they can get an upside follow-through.
Harry Boxer is a technical consultant to many Wall Street hedge funds and large institutional traders, and author of TheTechTrader.com.
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