The indices had another negative start to the week, but did come back a bit
late in the session, although the day started out with a pop to the upside, that
was the high for the day. They failed right at Friday's highs on the S&P
500, fell short on the NDX, and then rolled over in a 5-wave decline that lasted
most of the session, culminating with a retest of last week's lows on the NDX
and SPX on two different occasions late in the day. That held, they came back a
bit late on what appeared to be some short covering, but still closed
substantially lower on the day.
Net on the day the Dow was down 180, the S&P 500 down 19 1/2, and the
Nasdaq 100 just under 25. The Philadelphia Semiconductor Index (SOXX) was down 6
1/2.
The technicals were decidedly negative, with decliners outnumbering advancers
by 2 1/2 to 1 on New York and a little more than 2 to 1 on Nasdaq. Up/down
volume was worse, about 5 1/2 to 1 negative on New York on light total volume of
under 1 billion. Nasdaq also traded lighter volume, of about 1.6 billion, and
had a ratio of 5 1/2 to 1 on declining over advancing volume.
TheTechTrader.com board was mixed. Focus Media (FCMN) on a strong earnings
report gained 2.30, on nearly 10 million, closing at 28.55. Almost Family
(AFAM), a recent Chart of the Week, continued snapping back from Last Tuesday’s
sharp setback today, up another 2.14 to 42.35, and Solarfun (SOLF) on a solid
earnings report was up 1.03 today to 16.20.
Other point-plus gainers included the SDS up 1.83 and the QID up 1 as would
be expected in a down market. The DUG also snapped back 86 cents today, as oil
was soft.
Additionally, Sigma Designs (SIGM), up another 43 cents to 19.98, and
portfolio position Shengdatech (SDTH), also up 43 cents, to 9.95. United
Airlines (UAUA) crossed 15 for the first time in 2 1/2 months, closing at 14.94,
up 76 cents.
On the downside, point-plus losers included Energy Conversion Devices (ENER),
down 2.40 to 67.67, and Excel Maritime (EXM), down 1.54 to 37.55, as well as
Brigham Exploration (BEXP), down 1.05 in a generally weak junior oil sector.
A-Power Energy (APWR) gave back 74 cents , JA Solar (JASO) down 50 cents and
VisionChina Media (VISN) lost 99 cents.
Stepping back and reviewing the hourly chart patterns, a key test took place
today of trendline and lateral price support on the indices, and they did hold
late in the session, but are placed tentatively above key support levels and
potential breakdown levels. We'll see if they manage to hold them or whether
they finally break them and send the indices to test lower levels.
