A Very Bad Day for the Indices

The stock market indices started off with a very negative down hit in a thrust that broke support. It was a key day for the indices, and it wasn't a good one. Trend lines, moving averages, and price support were all broken, with the indices closing near the low for the day going away. It was probably a trigger to move to lower levels.

Net on the day, the Dow was down 129.71 at 13,880.08, the S&P 500 was down 17.46 at 1495.71, and the Nasdaq 100 was down 48.28 at 2715.68.

So it was not a good day for the indices.

The day started out with a move down. A slight bounce back to resistance failed, and they came down hard, rolling over extremely hard for the Nasdaq 100. The S&P 500 dropped from 1506 to 1496, the Nasdaq 100 dropped all the way from 2756 to 2722. It did bounce around midday to try to consolidate, but they only rolled over again into the close to close near the session lows.

Advance-declines were 4 to 1 negative on the New York Stock Exchange, and 4 to 1 negative on Nasdaq as well. Up/down volume was almost 6 to 1 negative on New York, with total volume of 685 million shares. Nasdaq traded 1.75 billion and had a better than 4 to 1 negative volume ratio.

TheTechTrader.com board, as a result, was mixed today. Leading the way to the downside were the large-cap generals. Apple Inc. (Apple Inc. (AAPL) was down 11.30 to 442.32, Google Inc. (GOOG) down 16.58 759.02, Amazon Inc. (AMZN) down 5.02 to 259.98, International Business Machines Corporation (IBM) 1.39 to 203.79, and Priceline Inc. (PCLN) 6.27 to 679.29.

Netflix Inc. (NFLX), however, was one of the few standouts today, jumping 9.94 to 174.74, which helped the Nasdaq 100.

Uni-Pixel, Inc. (UNXL) had a big move earlier in the day, going from 13.40 to 15.85, but came all the way back down to 13.83, up 41 cents. So, a very negative reversal there.

Other stocks of note to the downside included Onyx Pharmaceuticals, Inc. (ONXX) down 2.32 to 76.97, NXP Semiconductors NV (NXPI) down 1.41 to 29.35, Pharmacyclics Inc. (PCYC) 1.01 to 69.82, SodaStream International Ltd. (SODA) 1.44 to 48.21, and Goldman Sachs Group, Inc. (GS) to 2.38 to 147.52.

Facebook, Inc. (FB) was down 1.62 to 28.11, Ellie Mae, Inc. (ELLI) down 1.35 to 19.60, and Perion Network Ltd (PERI) 1.00 to 9.23.

The Direxion Daily Small Cap Bull 3X Shares (TNA) gave back 2.84 to 75.64, and the Direxion Daily Financial Bull 3X Shares (FAS) lost 5.03 to 142.47.

On the other hand, ProShares Ultra VIX Short-Term Fut ETF (UVXY) jumped 1.46 to 12.10, only 2 cents off the high on 16.7 million shares. So that was a good day there on a two-week high.

It's not auguring well for markets. It could mean that we're going to go lower here. It sure looks like it.

There were also many advances on our board today and we traded several of them. Leading the way was Sequans Communications S.A. (SQNS), up 47 cents to 2.75, or 21%. Hyperion Therapeutics, Inc. (HPTX) jumped 2.80 to 18.81, but the high today was 23.47, a big reversal off the high from Fridays low at 14. This stock was up nearly 24 today, so it's not surprising to see the late profit taking.

BlackBerry (BBRY), owned by Research In Motion Limited (RIMM), had a bid day today, up 1.96 to 14.98, or 15%, on 78.2 million shares. Panasonic Corporation (PC) jumped 84 cents to 7.72, or 12%, on 1.3 million shares. BroadSoft, Inc. (BSFT), which we traded today, gained 3.58 to 38.56, or 10%, on 1.2 million shares. Caesars Entertainment Corporation (CZR) popped 90 cents to 8.71, or 11 1/2%, on 1.2 million shares.

Methode Electronics, Inc. (MEI) had a very interesting chart today. It opened just below the support line near 9.90, had a dip around noon, and then thrust up to around 10.90, closing at 10.68, up 82 cents. Bonanza Creek Energy, Inc. (BCEI) had a good day, up 1.10 to 31.85, Deckers Outdoor Corp. (DECK) up 1.47 to 41.39, Infinity Pharmaceuticals, Inc. (INFI) 1.38 to 35.50, and ServiceNow, Inc. (NOW) 89 cents to 28.96.

Stepping back and reviewing the hourly chart patterns, the indices had a negative day with a negative start and a negative finish, gapping down, bouncing, falling hard late morning, consolidating into the late afternoon, before it rolled over again after the rally attempt failed.

It was a very bad day for the indices, and a day we could look back on and say that was where the recent rally cracked and it was over.

Good Trading!

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