Stock Market Technicals Stay Strong Despite Early Morning Dip

Stock-Markets / Stock Markets 2016 Mar 04, 2016 - 02:16 PM GMT

The stock market indices had a really good session, even though they were down in the morning, and looked like they could be breaking, especially the Nasdaq 100. Both the advance-decline and up/down volume were very strong, even during the down part of the session. It led me to believe we would get a rally, and we did, taking the S&P 500 to new highs, but the Nasdaq 100 closed down on the day.

Net on the day, the Dow was up 44.58 at 16,943.90, 123 points off the low. The S&P 500 was up 6.95 to 1993.40, just pennies off its high, after being down as low as 1977. The Nasdaq 100 was down 8.52 to 4325.86, 30 points off its low.

Advance-declines were better than 3 to 1 positive on the New York Stock Exchange, and 17 to 10 positive on Nasdaq. Up/down volume was 4 1/2 to 1 positive on New York, total volume of over 5 billion shares traded. The Nasdaq traded 1.9 billion shares and had a 12 to 7 positive volume ratio.

TheTechTrader.com board was mixed today. The Nasdaq 100 stocks didn’t fare to well. Priceline.com (PCLN) was up 1.67 to 1303.04, Apple Inc. (AAPL) up just 75 cents to 101.50, Netflix, Inc. (NFLX) had an even smaller gain, up 32 cents to 97.93, but Google Inc. (GOOG) dropped 6.43 to 712.42, and Amazon.com Inc. (AMZN) gave back 2.72 to 577.49.

Tesla Motors, Inc. (TSLA) ran up 7.40 to 195.74, and Baidu, Inc. (BIDU) popped just 36 cents to 177.30.

Rovi Corporation (ROVI) was up 1.12 to 22.50, Targa Resources Corp. (TRGP) up 1.56 to 28.75, and SolarCity Corporation (SCTY) was a big gainer today, up 3.03 to 22.49.

Editas Medicine Inc. (EDIT) has been as really nice stock for us. It more than tripled in the last month and was up another 5.59 to 37.49 today.

Checking the TheTechTrader.com percent-gain leaderboard, low-priced CorMedix, Inc. (CRMD) gained 63 cents to 2.39, or 35%, on 1.5 million shares.

SM Energy Company (SM) popped 3.17 to 13.15, or 32%, on 8.8 million shares traded in a very strong oil sector. Other stocks in that sector included EP Energy Corporation (EPE), up 65 cents to 2.96, or 28%, on 3.8 million shares traded. Unit Corporation (UNT) had a good day, up 2.18 to 9.62, or 29%, on 4.6 million shares traded. Peabody Energy Corporation (BTU) climbed 80 cents to 3.24, or 33%, on 6 million shares. Chesapeake Energy Corporation (CHK) took off and ran 87 cents to 4.27, or 26%, on 138 million shares. Whiting Petroleum Corp. (WLL) stair-stepped its way up in the morning, and kept on going, reaching up 1.11 to 6.31, or 21%, on 58 million shares.

The Direxion Daily Brazil Bull 3X ETF (BRZU) jumped 2.81 to 15.23, or 23%, on 2.8 million shares.

Stepping back and reviewing the hourly chart patterns, the indices came down in three waves in the morning. When the S&P 500 failed to take out the low, and the Nasdaq 100 did, a positive divergence triggered an afternoon rally, and a 5-wave advance into the close, the S&P 500 closing over 1993 today.

Let’s see what happens tomorrow.

Good Trading!

Harry

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