The indices had a strong slide in the afternoon that brought them back sharply into the loss column. After a strong morning rally to new highs, the indices failed below resistance, particularly on the SPX, and rolled over in a sharp 5-wave decline, closing near the session lows.
Net on the day the Dow was down 173.47 to close at 8300.02, the S&P 500 was down 17.27 at 893.06, and the Nasdaq 100 down 10.73 to 1401.88. The Philadelphia Semiconductor Index (SOXX) was up 4.12 to 263.94.
Advance-declines were 21 to 9 negative on New York and about 2 to 1 negative on Nasdaq. Up/down volume was 4 to 1 negative on New York on total volume of about 1.3 billion. Nasdaq traded over 2.1 billion and had a 2 to 1 negative volume ratio.
TheTechTrader.com board was mixed with some point-plus gainers and losers. Junior biotechs had an outstanding day today. Low-priced Oculus Innovative (OCLS) was the star of the day, up 2.90 to 4.10, a gain of 242% today.
MAP Pharmaceuticals (MAPP) followed up to yesterday’s big gain, jumping at one point nearly 5, closing up 3.15 on 9.2 million shares to 12.15.
Cree Inc. (CREE) on a strong earnings report was up 2.15, Apple (AAPL) up 2.27, and Canadian Solar (CSIQ) was up 1.05 to 12.08. It’s up 300% from its March low.
Vanda Pharmaceuticals (VNDA) hit a new rally high over 14, but closed at 13.85, up 66 cents.
Obviously, the ultrashorts had a good day today, with UltraShort Financial ProShares (SKF) up 2.74, UltraShort Real Estate ProShares (SRS) up 1.25, and the Direxion Small Cap 3x Bear (TZA) up 1.30.
The Direxion Financial Bear 3x Shares (FAZ) gained 44 cents to 5.40.
U.S. Oil Fund ETF (USO) was up 47 cents on advancing crude oil. The PowerShares DB Double Long Oil (DXO) was up 9 cents to 3.88.
On the downside, loss leaders included Goldman Sachs (GS) down 2.04, JP Morgan (JPM) down 1.88, Wells Fargo (WFC) down 1.57, and Bank of America (BAC) down just 7 cents.
Potash (POT) lost 4.88, and Mosaic (MOS) was down 1.81 to 54.56. Amazon (AMZN) also lost 1.29. The Direxion Financial Bull 3x Shares (FAS) lost 80 cents to 8.84.
Stepping back and reviewing the hourly chart patterns, the indices were up early and extended their gains in the morning, accelerated mid-day but rolled over and then had a sharp sell-off that brought them back down sharply into the loss column, ending near the lows for the day going away. We’ll see if they continue today’s late-afternoon slide in the morning.
We’ll be watching the key support level around 880 on the SPX. But, they’re a long way from key support on the Nasdaq 100, still holding above the 1400 level, but 1385-90 is key initial support, and then the 1345-50 zone being KEY support.
