The markets ended mixed but generally higher, although it was a rather lackluster trading session and stocks didn’t appear to make much progress, particularly on Nasdaq, where a lower SOX index put pressure on the NDX all day.
The day started out with a move lower that held support and bounced sharply, but then they meandered in a coil-like fashion for the rest of the session until late in the day when they rolled over a bit. Only in the last 10 minutes did they bounce back again to maintain some of their gains.
Net on the day the Dow was up 58.42 to 8555.60, the S&P 500 up 7.66 to 918.37, its biggest gain in 2 weeks, and the Nasdaq 100 down 2.09 to 1453.80. The Philadelphia Semiconductor Index (SOXX) lost 4.89 to 261.20, part of the reason there was so much pressure on the NDX today, as semiconductors took it on the chin.
Advance-declines were positive by less than 3 to 2 on New York and by less than 160 issues on Nasdaq. Up/down volume was 3 to 2 positive on New York on lighter total volume of just over 1 billion. Nasdaq traded nearly 2.1 billion, but had 4 to 3 negative volume ratio.
So a mixed picture on the indices and technicals.
TheTechTrader.com board was mostly fractionally changed, with some point-plus gainers and one point-plus loser on our board. Gainers included Goldman Sachs (GS) up 3.36 to 143.09 and JP Morgan (JPM) up 1.44 to 34.19 in the generally strong financial sector, which also featured Morgan Stanley (MS) 58 cents to 28.03 and Wells Fargo (WFC) up 61 cents to 23.70. Bank of America (BAC) also gained 60 cents to 12.90, and Hartford Financial Services (HIG) was up 78 cents to 11.98.
Most other groups and stocks were just fractionally changed in a narrowly focused day today, but healthcare related stocks also did well today
OncoGenex Pharmaceuticals (OGXI) dropped 1.31 on lighter volume, after a negative article online.
Stepping back and reviewing the hourly chart patterns the indices vacillated in a narrowing coil until the end of the day when they rolled over. After repeated attempts to break out, they only had nominal success but failed to follow though.
When you view the hourly charts you’ll see that a downtrend may be underway, and unless they break to the upside with key resistance now at 1470 NDX and the 925 area on the SPX, it’s likely we may continue the downtrend.
Tomorrow is quadruple witching Friday which only occurs 4 times a year, and could be a volatile session, particularly if volume is light with the onset of summer.
Good trading!
Harry
