Stock Market Disappointing Close

By: Harry_Boxer

The market was mixed at the close, but the indices certainly disappointed with a late afternoon sell-off, taking the indices from the plus column into the negative column, except for the Nasdaq 100.

The day started out with a gap up. They didn't make much headway, as they immediately consolidated, rolled over and made new lows for the entire 4-week decline, with the NDX getting down to 1072 and change, and S&P 500 getting to as low as 692 and change. Then they bounced around, started a mid-day rally, and in the afternoon surged to new session highs on the Nasdaq 100 but could not confirm on the S&P. When that occurred and declining tops line resistance was met and unable to be taken them out, the indices rolled over into the close to retest the lows on the SPX, closing above them on the NDX.

Net on the day the Dow was down 36.27 to 6726, and the S&P 500 down 4.49 at 696.33, the first time it's closed below 700 in 11 1/2 years, since October 1997. The Nasdaq 100 closed at 1080.67, up 4 even. The Philadelphia Semiconductor Index (SOXX) at 191.49 was up 2.52.

So a mixed close on the indices.

The technicals were quite negative, with advance-declines 21 to 10 negative on New York and 17 1/2 to 10 negative on Nasdaq. Up/down volume was also negative by a much smaller margin, about 5 to 4 on New York and a little less than 3 to 2 on Nasdaq. Total volume on New York was just under 1.9 billion, so heavier volume, and Nasdaq traded 2 1/3 billion.

TheTechTrader.com board was mixed but generally higher. Potash (POT) was up 2.06, Mosaic (MOS) 2.43 and Agrium (AGU) 2.51. Direxion Large Cap Bear 3X Shares (BGZ) gained 2.53 and the Direxion Financial Bear 3x Shares (FAZ) up 3.90. But the SRS ultrashort real estate ETF was actually down today by 1.37 in a negative reversal.

American Pasta (AIPC) snapped back 1.49 to 31.86, and Sigma Designs (SIGM) surprised today and has been acting very well of late, up 1.23 to 14.13 on 1.4 million shares.

There were several other fractional gainers across the board.

On the downside, there were no point-plus losers other than the SRS. Large fractional losers included Sequenom (SQNM) down 46 cents to 13.03, Net 1 Ueps Technologies (UEPS) down 93 cents to 12.48, General Electric (GE) down 59 cents to 7.01 and DG FastChannel (DGIT) down 67 cents to 14.55.

Stepping back and reviewing the hourly chart patterns, the indices did manage to have an afternoon rally, but did nothing to improve the declining channel condition other than a bounce off the bottom of that channel earlier in the session. But they closed rather weak and near the lows for the day on the S&P and not far from them on the Dow as well. We'll have to see if we can get a turnaround tomorrow, or whether this decline continues. Right now it sure looks like lower levels may be tested.

Good trading!

Harry

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