The markets ended lower today, not by a lot, but considering we were up sharply at the opening the indices closed rather poorly on the session. After that sharp opening, the market went into a 3-wave decline that lasted for most of the session, although they did bounce in the last half hour or so to take them off the lows for the day.
The markets ended lower today, not by a lot, but considering we were up sharply at the opening the indices closed rather poorly on the session. After that sharp opening, the market went into a 3-wave decline that lasted for most of the session, although they did bounce in the last half hour or so to take them off the lows for the day.
Net on the day the Dow was down 14.4, but 115 points off the high. The S&P 500 was down nearly 5, but closed 14 points off the high. The Nasdaq 100 was down 4 on the session, 16 points off the high. The Philadelphia Semiconductor Index (SOXX) was down just 1.29, but about 5 points higher earlier in the session.
Technicals were negative by about 21 to 12 on advance-declines on New York and by about 16 to 13 on Nasdaq. Up/down volume was more than 2 to 1 negative on New York with a total of 1.7 billion traded. Nasdaq traded 2.14 billion with about a 13 to 8 negative ratio.
TheTechTrader.com board was mixed, about 50/50 today. Ascent Solar (ASTI) gained 1.24, or more than 15%. Other leaders included MEDTOX Scientific (MTOX), one of our recent Charts of the Week, up 1.69. Metabolix (MBLX) gained 94 cents, JA Solar (JASO) 1.03, and Hoku Scientific (HOKU) up another 1.34.
Other stocks of note, Chindex (CHDX) gained 70 cents, FuelTek (FTEK) 65 cents, GRRF 43 cents, and LXU, one of our Charts of the Week, up 45 cents.
On the downside, MicroStrategy (MSTR) dropped 1.52 and Spartan Motors (SPAR) 94 cents. Those were new Boxer Shorts this week. VASCO Data Security (VDSI) dropped 94 cents. Global Solutions (GSOL) fell 95 cents, Force Protection (FRPT) 1.76, and DXP Enterprises (DXPE) 94 cents.
Stepping back and reviewing the hourly chart patterns, we made new 5-day pullback lows today before bouncing late in the session, but the indices are in a definitive downtrend and have not able to get back over their declining moving averages on the 60-minute charts. Until they do the trend is down and going lower. The S&P is right at key support going back nearly 7 weeks at the 1488-90 zone, reaching as low as 1490.54 today. That’s a level that must hold or they can really start to cascade lower.
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.