Stock Market At Danger Zone

Stock-Markets / Stock Markets 2016 Aug 03, 2016 - 12:38 PM GMT

The stock market indices started the day off with a nasty drop, and kept dropping all day until midday when they reached my target zone at 4690 Nasdaq 100 and 2148 S&P 500, and then they rallied nicely, the Nasdaq 100 jumping about 35 points and the S&P 500 about 11-12 points. Near the end of the day, they backed off just a little, but ended up near the afternoon rally highs. Still, they closed down sharply on the day.

Net on the day, the Dow was down 90.74 at 18,313.77, about 65 points off the low. The S&P 500 was down 13.81 at 2157.03, 10 points off its low. The Nasdaq 100 was down 36.83 at 4719.21, 30 points off its low.

Advance-declines were more than 3 1/2 to 1 negative on the New York Stock Exchange, and 3 to 1 negative on the Nasdaq. Up/down volume was 2.8 to 1 negative on New York, total volume of 3.8 billion shares traded. The Nasdaq traded a little over 2 billion shares and had a 3 to 1 negative volume ratio.

TheTechTrader.com board was nearly all red today. Priceline.com (PCLN) was down 10.70 to 1345.38, Google Inc. (GOOG) down 1.81 to 771.07, Apple Inc. (AAPL) down 1.57 to 104.48, Amazon.com Inc. (AMZN) 7.16 to 760.58, and Netflix, Inc. (NFLX) 81 cents to 93.56.

Baidu, Inc. (BIDU) gave back 2.48 to 160.76, Facebook, Inc. (FB) dropped 1.22 to 123.09, but First Solar, Inc. (FSLR) actually gained 38 cents to 47.76.

Tesla Motors, Inc. (TSLA) lost 2.81 to 227.20.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) had a difficult session, down 1.44 to 43.75, dropping as low as 41, but exploding too nearly 46 at one point on takeover talks by Biogen.

Ambarella, Inc. (AMBA) was down 2.29 to 56.56, Acacia Communications, Inc. (ACIA) down 3.18 to 60.79, BroadSoft, Inc. (BSFT) down 1.90 to 42.44, Twilio, Inc. (TWLO) 1.40 to 37.93, Intrexon Corporation (XON) 1.15 to 26.23, after rocketing to 28.00 earlier.

Checking TheTechTrader.com percent-gain leaderboard, Amkor Technology, Inc. (AMKR) bounced 85 cents to 7.30, or 13%, on 6.5 million shares.

Seanergy Maritime Holdings Corp. (SHIP) gained 3.30 to 6.20, or 114%, on 6.2 million shares, 63,000% more volume than average. Avon Products Inc. (AVON) closed up 1.08 to 7.73, or 16%, on 1.9 million shares.

Advaxis, Inc. (ADXS) had a big day, up 2.61 to 11.08, or 31%, on 6.38 million shares, on a deal with Amgen Inc. (AMGN), getting 40 million up front and selling 3 million shares to AMGN. Carbonite, Inc. (CARB) advanced 2.06 to 13.24, or 18.4%, on 2.3 million shares on earnings. Trex Co. Inc. (TREX) exploded 8.05 to 56.95, or 16%, on 1.8 million shares on a strong earnings report.

Douglas Dynamics, Inc. (PLOW) ran 4.48 to 31.49, or 17%. SodaStream International Ltd. (SODA) also had a big day, up 3.97 to 28.25, or 16%, on 3.7 million shares on strong earnings. Mallinckrodt Public Limited Company (MNK) climbed 9.41 to 76.91, or 4%, on 7 million shares.

Stepping back and reviewing the hourly chart patterns, the indices had a very nasty morning, and a nice afternoon to bring them back, but still, it was a nasty close on the day. Key support was taken out on the S&P 500. This is a danger zone for the indices.

Good Trading!

Harry

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