Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Rally Loses Steam in Narrow Up-Session

Stock-Markets / Stock Markets 2010 Jul 13, 2010 - 02:55 AM GMT

By: Harry_Boxer

Stock-Markets

Best Financial Markets Analysis ArticleThe stock market indices managed to eke out a gain today, but the path to those gains was a little choppy.

The day started out with a sharp move higher. The Nasdaq 100 got to 1831.62 and the S&P 500 got up to 1080.78, and then they sold off sharply to new lows for the day. But they held right at support near 1810 NDX and 1070 SPX, and then began a move back upward. By mid-afternoon they stalled and ground back and forth, firming up a little bit in the last half hour to close in the plus column.


Net on the day, the Dow was up another 18.24 at 10,216.27, the S&P 500 up only 79 cents at 1078.75, and the NDX up 6.24 at 1821.03.

Technicals were negative by 19 to 11 on declines versus advances on the New York Stock Exchange and by more than 1000 on Nasdaq at 1856 losing issues to 811 winners. However, up/down volume was only 4 to 3 negative on New York with total volume under 3/4 of a billion. Very light today. Nasdaq volume was positive by 10 to 7 with nearly 1.75 billion traded. So, it was a mixed session today.

Charts of the Day:

Today we're going to cover some of the members of the Boxer Shorts List that are looking particularly negative.

Almost Family Inc. (AFAM), a healthcare-related service firm, had a big run up off the early March lows like many stocks did in 2009, taking it from about 14 all the way up to 43 and change. The stock rolled over in May, bounced, formed a little bit of a bear flag, completed a topping pattern, broke down with a big breakaway gap to the downside, taking out the neckline at around 33.57. It was barely able to bounce, forming a little bear flag and appears that it may not be over yet to the downside. Looking for a move that takes it down into the low 20s, my short-term trading target, to test the July low.

Amedisys Inc. (AMED) is another health care related stock that is crumbling. It created a topping pattern, took that out with a breakdown in May. It kept edging lower, spiked down a week and a half ago, and now has formed a bear wedge. If it cracks this pattern to the downside, we're going to see lower levels. Looking for a potential move down to test the 28 1/2 level on a short-term basis, my initial trading target.

CareFusion Corporation (CFN), medical instruments and supplies, topped over the course of the last several months, broke the neckline of the kind of head-and-shoulders top. It bounced a little bit, but it backed off again. This stock looks weak and is not responding very well. We could see a full-fledge return to sender all the way back down to 18 - 19 level, my short-term trading target.

Diamond Offshore Drilling Inc. (DO) cracked at the 84 level in May, went all the way down to the mid-50s, bounced, backed and filled, and now it's formed a big bear wedge. Should this break to the downside, this pattern could quickly retest the lows around 54, another 10 points down. If that's taken out, there's a substantial amount of support in that zone going back to 2008-09. Short-term we're looking for a retest of the lows at 54-55.

Reviewing our Watchboard:

TheTechTrader.com board, as a result, was mixed today. Most of the stocks were very narrowly changed today, but the majority of them were on the downside. However, there were several point-plus gainers today. Leading the way today was InfoLogix, Inc. (IFLG), which jumped 1.37 at 6.17, a substantial percentage gain there.

Larger-cap stocks included Google Inc. (GOOG) up 8.34 to 475.83, Amazon.com Inc. (AMZN) up 2.25 to 119.51, BP Exploration plc (BP) up 2.71 to 36.76, Transocean Ltd. (RIG) up 2.23 to 54.06, and Cree Inc. (CREE) up 1.05 to 67.17.

Two of the ultra-short ETFs actually gained today. The Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) was up 1.10 at 41.32 and the Direxion Daily Small Cap Bear 3X Shares (TZA) up 1.17 at 37.78.

On the downside, loss leaders included Apple Inc. (AAPL) down 2.34 at 257.29, as consumer reports failed to recommend their new iPhone. The only other point-plus loser was Valassis Communications Inc. (VCI), down 1.89 at 30.10.

Stepping back and reviewing the hourly chart patterns, the indices were up sharply at the opening, down sharply by mid-morning, and then had a slow grind back up the rest of the day to bring the indices just back up to the plus column. With technicals as negatively confirming as they were today, the market appears to be losing momentum and could back off more substantially over the next couple days to retest.

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

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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