Best Financial Markets Analysis Article The stock market indices got smacked hard, particularly at the opening when they gapped down big time, dropped sharply right after the opening gap, and did try a snapback rally which failed at initial resistance. That was the best they could do all day.

During the rest of the day they stair-stepped lower, tested, bounced a couple times, but then rolled over in the last hour only to bounce in the last 10 minutes to bring them off the lows, but still an extremely negative day.

Net on the day, the Dow was down 268.22 at 9870.30, the S&P 500 down 33.33 at 1041.24, and the Nasdaq 100 down 71.94 at 1764.06.

Advance/declines were extremely negative today with 260 issues up and 2852 down on the New York Stock Exchange and 288 up and 2402 down on Nasdaq. Up/down volume was at an extreme level today as well.

Reviewing our Watchboard:

TheTechTrader.com board was extremely negative today, with some very big losses, particularly in the large-cap tech stocks. Leading the way on the downside, Google Inc. (GOOG) dropped 17.82 at 454.26, Apple Inc. (AAPL) 12.13 at 256.17, Amazon.com Inc. (AMZN) 9.19 at 108.61, Netflix, Inc. (NFLX) 5.03 at 112.58, Valassis Communications Inc. (VCI) 2.43 at 31.51, Las Vegas Sands Corp. (LVS) 2.51 at 22.84, and Goldman Sachs (GS) 2.90 at 133.79. In addition, Dendreon Corp. (DNDN) gave back a whopping 3.56 at 33.59, and Cree Inc. (CREE) 3.76 at 60.88.

There were many other multiple-point losers, which included several of the stocks that we follow closely. Acme Packet, Inc. (APKT) lost 1.58 at 27.26, Brigham Exploration Co. (BEXP) 1.04 at 15.55, and Coinstar Inc. (CSTR) 1.90 at 43.85.

In the Chinese sector, China Agritech Inc. (CAGC) was down 1.05 at 10.40, China Automotive Systems Inc. (CAAS) 86 cents at 17.97, and RINO International Corporation (RINO) 1.54 at 12.23.

There were too many others to mention on the downside today.

Stocks on the upside included most of the ultra-short ETFs, with the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) leading the way, up 5.11 to 48.72. The Direxion Daily Large Cap Bear 3X Shares (BGZ) gained 1.51 to 17.68, the Direxion Daily Financial Bear 3X Shares (FAZ) 1.60 to 16.97, and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) 2.61 to 30.83.

Stepping back and reviewing the hourly chart patterns, the indices had a decidedly strong down day with strong negative technicals, but the indices did manage to bounce back late in the session near key support levels.

We'll see if that's meaningful or not going forward tomorrow, but today was an exceptionally negative day for the indices, with big down gaps at the opening triggering the sell-off. We'll see if we're anywhere near a climatic low at this point and we can reverse off these levels or not, or whether this is just the beginning of a very serious slide. Stay tuned.

Good Trading!

Harry

For more of Harry Boxer, sign up for a FREE 15-Day Trial to his Real-Time Technical Trading Diary. Or sign up for a Free 30-Day Trial to his Top Charts of the Week service.

(c) 2010 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at info@advicetrade.com . In using any portion of Harry Boxer's content, you agree to the terms and conditions governing the use of the service as described in our disclaimer at http://www.thetechtrader.com

Mr. Boxer's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Harry Boxer Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.