The indices closed mostly lower today, with the Dow managing to keep its head above water and closing in the plus column as the only index to do so.
But the technicals confirmed the negative session today. The day started out with some mixed vacillating movement and then a sharp sell-off ensued after the consumer confidence index came out sharply lower than expected . The indices then bounced sharply to take back nearly all its losses, but rolled over at resistance and went to new lows by mid-afternoon. They did bounce in early afternoon but then backed off again in the last hour.
The Nasdaq 100 led the way to the downside today, down 24.29 at 1722.46. The Philadelphia Semiconductor Index (SOXX) was down 8 points, or more than 2 1/2 percent, closing at 309.44. The S&P 500 fell 3.54 to 1063.41, but the Dow closed up 14.21 at 9882.17.
The technicals as indicated before, however, were decidedly negative by nearly 2 to 1 on advance-declines on New York and about the same on Nasdaq. Up/down volume was more than 2 to 1 negative on New York on total volume of 1 1/3 billion. Nasdaq traded 2 1/3 billion and had a better than 6 to 1 negative volume ratio.
TheTechTrader.com board was mostly negative. Leading the way to the downside was American International Group (AIG), down 2.24 to 34.01. RINO International (RINO) continued its recent pullback, falling 1.49 to 20.69, and China Automotive (CAAS) lost 1 to 10.55. Direxion Financial Bull 3x Shares (FAS) fell 1.53 to 76.30.
Those were the only point-plus losers on our board.
Among the large fractional losses, Rambus (RMBS) gave back 67 cents at 17.18, Goldman Sachs (GS) 76 cents to 178.61, and China Green Agriculture (CGA) 78 cents to 11.63 in a weak Chinese sector, along with China TransInfo (CTFO) down 47 cents at 8.53. DryShips (DRYS) lost 52 cents at 6.37, and BioCryst Pharmaceuticals (BCRX) 39 cents at 10.55.
On the plus side, the Direxion Financial Bear 3x Shares (FAZ) gained 41 cents to 21.09, Direxion Large Cap Bear 3X Shares (BGZ) 30 cents at 20.75, the Direxion Small Cap 3x Bear (TZA) 45 cents to 12.77, and the UltraShort Real Estate ProShares (SRS) 28 cents to 10.03.
The U.S. Oil Fund ETF (USO) gained 46 cents to 40.59 on firmer oil.
Acorn Energy (ACFN) advanced 58 cents to 7.83, LJ International (JADE) 24 cents to 3.94, and Sinovac (SVA) 13 cents at 8.19.
Stepping back and reviewing the hourly chart patterns the 2-day pullback continued with lower prices in a 5-wave intraday decline on the indices. Despite a mid-day crack to new lows on the NDX, the SPX failed to confirm that and at the close still had failed to do so, with key support around 1060, the SPX managed to hold on three occasions,
We’ll see if that’s significant or just a stopping point to lower levels.
Good trading!
Harry
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