The market certainly got some volatility today, down in the morning, up
mid-day and then back down late in the day. But it ended with losses for the
session.
The day started out with a big gap down on negative futures. They backed and
filled in the morning, bear-flagged, and then went lower, reaching the session
lows by mid-morning. That was right at yesterday's mid-day lows. When those
levels held the indices then staged a rally. By lunch hour, it was backing and
filling in a consolidation mode, and then exploded out of that early afternoon
in a very strong rally that nominally took out yesterday's highs on the Nasdaq
100 but fell just short on the S&P 500. When that occurred, they then rolled
over hard, gave back about 2/3 of the gains, and bounced in the last half hour
to pare the losses.
Net on the day the Dow was down 105.3, the S&P 500 12 3/4, and the Nasdaq
100 about 17.7. The Philadelphia Semiconductor Index (SOXX) lost 5 today and
closed very near 200 at 199.99.
Advance-declines were a little less than 4 to 1 negative on New York and
about 3 to 1 negative on Nasdaq. Up/down volume was a little less than 4 to 1
negative as well as on New York on total volume of about 1.55 billion. Nasdaq
traded 2.3 billion and had about a 4 1/2 to 1 negative volume ratio.
As a result of the losses in the indices, most stocks on TheTechTrader.com
board were down, other than a couple isssues that had earnings reports today.
Leading the way on the plus side, Apple (AAPL) was up 5.53 to 88.36 and Potash
(POT) at 73.19 was up 4.02, in what analysts interpreted as positive earnings
reports.
Financials were lower in the morning, strong by mid-day, and gave back some
of it by the end of the day, but they closed mixed, with Morgan Stanley (MS) at
17.58 up 72 cents and JP Morgan (JPM) at 23.10 up 47 cents today. However,
Citigroup (C) was down 56 cents, Bank of America (BAC) down 90 cents, and Wells
Fargo (WFC) down 86 cents.
Other point-plus losers included SunPower (SPWR) at 29.17 down 3.32. Energy
Conversion Devices (ENER) gave back 1.42 to 23.59, and Hartford Financial
Services (HIG) at 12.18 was down 1.31. Aluminum Corp. of China (ACH) lost 1.10
to 10 1/4.
The ultrashort ETFs obviously fared well, with the Direxion Financial Bear 3x
Shares (FAZ) was up 9, and the Direxion Large Cap Bear 3X Shares (BGZ) up 3.
Among the losing ETFs, the iShares FTSE/Xinhua China 25 Index (FXI) fell
1.25, Direxion Financial Bull 3x Shares (FAS) down 1.52, iShares MSCI Brazil
Index ETF (EWZ) down 1, Ultra Oil & Gas ProShares (DIG) 1.39, Direxion Large
Cap Bull 3X Shares (BGU) 1.46, and the U.S. Oil Fund ETF (USO) down 1.09.
Stepping back and reviewing the hourly chart patterns, there were some wild
swings today back and forth, reaching key short-term support and then testing
short-term resistance, neither of which were able to be penetrated as the
indices closed near mid-range but down on the session.
We'll see how it goes over the next couple days, as to whether the recent
action is just a consolidation with more downside coming, or a basing attempt in
an effort to turn the current down trend back up.
Good trading!
