Negative Session Pricewise, Technicals Flat to Slightly Higher

The stock market indices had an interesting day and ended lower, but they were all over the place.

The day started out with a sharp move up that reached resistance at 2750 NDX and near 1504 S&P 500. They rolled over hard, reaching lower lows, but by late morning they had reached secondary support that held. They then started a 5-wave advance in a very orderly fashion, with an hour or so to go, and reached a .50 to .618 Fibonacci retracement, depending on the exchange, and then rolled over hard to test support. They bounced in the last 10 minutes, only to back off in the last 5 minutes.

Net on the day, the Dow was down 49.84 at 13,860.58, the S&P 500 was down 3.85 at 1498.11, and the Nasdaq 100 was down 7.18 at 2731.53, 12 points off the low.

Advance-declines were higher by 120 issues on the New York Stock Exchange, and 570 issues on Nasdaq. Up/down volume was flat on New York, with total volume of 888 million shares.
Nasdaq traded nearly 2 billion shares, with a 12 to 10 negative volume ratio. board was fairly narrowly mixed for a lot of large-cap stocks. Amazon Inc. (AMZN) was down 7.26 to 265.50, Netflix Inc. (NFLX) lost 2.46 to 165.24, Priceline Inc. (PCLN) gave back 9.62 to 658.47, and SodaStream International Ltd. (SODA) lost 2.44 to 48.09.

Leading the way to the upside on our board today was Fortinet Inc. (FTNT), up 4.24 to 23.59, or 22%, on 14 million shares. Pitney Bowes Inc. (PBI), which we traded today, was up 2.43 to 14.41, or 21%, on 18 million shares. JDS Uniphase Corporation (JDSU), which we also traded today, gained 2.11 to 14.51, or 17%, on 23 million shares. Cardiovascular Systems Inc. (CSII) advanced 2.13 to 15.74, or 16%. Silicon Graphics International Corp. (SGI) exceeded our swing trade target by closing up 1.71 to 14.54, or 13%, on 1.6 million shares.

Skyworks Solutions Inc. (SWKS) gained 2.38 to 23.94, or 11%, on 13.5 million shares. Citrix Systems, Inc. (CTXS) jumped 6.18 to 73.16, or 9%, on 6 million shares after earnings.

BioFuel Energy Corp. (BIOF) had an interesting day, up 55 cents to 4.70, or 13%. KEMET Corp. (KEM), which we traded today, gained 55 cents to 5.76, or 10 1/2%. Mitek Systems Inc. (MITK) traded up 11 cents to 3.46, and got as high as 3.91 today on earnings. Sunesis Pharmaceuticals, Inc. (SNSS) popped 54 cents to 5.67, or 10 1/2% on 2 million shares. Ericsson (ERIC) was up 93 cents to 11.60, or 9%, on 20 million shares.

CIENA Corp. (CIEN), in a strong helicopter group, jumped 1.06 to 15.66, Align Technology Inc. (ALGN) was up 2.09 to 31.36, AutoNation Inc. (AN) climbed 3.75 to 48.50, and Las Vegas Sands Corp. (LVS) 3.69 to 55.25 on strong earnings.

Stepping back and reviewing the hourly chart patterns, the indices were up early, down sharply to new session lows, had a 5-wave reversal to recover between a half and two-thirds losses, only to pullback again and retest the lows near the close.

It was a negative session price-wise, but with technicals flat to slightly higher, it may even be a positive divergence.

We'll see how it goes on tomorrow.

Good Trading!

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