Harry Boxer
The Technical Trader
The stock market indices had a snapback session after a morning drop and ended up with a nice gain on the day.
The day started out with a little bit of firmness, a retest, and then a sharp move up that fell right at resistance near 2718 Nasdaq 100 and 1498 S&P 500. At that point, they sold off to more new lows for the entire pullback, reaching 2690 NDX and 1485 S&P 500.
They then tried a 5-wave rally which extended all afternoon. Near the close, they tested the highs and backed off in the last five minutes.
Net on the day, the Dow closed back over 13,900 at 13,900.13, up 115.96. The S&P 500 was up 9.09 at 1496.94, just 2 points off the high and 12 points off the low. The Nasdaq 100 was up 12.05 at 2713.02, 5 points off the high and 24 points off the low.
That was a nice recovery there.
Advance-declines were 2 to 1 positive on the New York Stock Exchange, and 3 to 2 positive on Nasdaq. Up/down volume was 2 1/2 to 1 positive on New York, with total volume of 758 million shares. Nasdaq traded nearly 1.8 billion and had an 11 to 7 positive volume ratio.
TheTechTrader.com board was mixed today. Leading the way among large-cap stocks was Apple Inc. (AAPL), on rumors of a dividend split, jumped from 437.66 to 451.54, and closed at 448.97, up 6.17. Netflix Inc. (NFLX) was up 4.77 to 184.09, and International Business Machines Corporation (IBM) up 1.63 to 199.14.
Priceline Inc. (PCLN) up 6.95 to 678.49, but is trading at 7.12 in the aftermarket on strong earnings, up another 33 points or 5% higher. Green Mountain Coffee Roasters Inc. (GMCR) gained 1.39 to 45.40,
Other gainers of note included MediciNova Inc. (MNOV), up 84 cents to 2.98, or 39%, on 3.6 million shares, 15,000% more volume than normal. U.S. Silica Holdings, Inc. (SLCA) advanced 3.27 to 21.62, or 18% on 2.5 million shares.
Home builders were strong on our board today. Hovnanian Enterprises Inc. (HOV) was up 59 cents to 5.79, KB Home (KBH) up 1.23 to 18.37, PulteGroup, Inc. (PHM) 1.03 to 19.05, and Standard Pacific Corp. (SPF) 64 cents to 8.04, were among other home builders.
In addition, Ebix Inc. (EBIX) gained 1.05 to 14.26. Exterran Holdings, Inc. (EXH), which we traded today, was up 1.53 to 24.54. Carrizo Oil & Gas Inc. (CRZO) rose 1.29 to 22.58, and The Home Depot, Inc. (HD), on great earnings, 3.64 to 67.56. Questcor Pharmaceuticals, Inc. (QCOR) gained 1.61 to 32.66.
Cynosure, Inc. (CYNO) popped 1.15 to 27.59, Aegerion Pharmaceuticals, Inc. (AEGR) was up 1.02 to 29.38, DigitalGlobe, Inc. (DGI) added 1.46 to 27.00, and CommonWealth REIT (CWH) advanced 8.55 to 24.40.
On the downside, losers included First Solar, Inc. (FSLR), down 1.38 to 31.36, but in after-hours it was trading another 2 points lower, on disappointing earnings.
Stepping back and reviewing the hourly chart patterns, the indices came down in a falling wedge-type pattern, but snapped back in a 5-wave advance, resulting in a very nice comeback session.
However, so far it's just a technical snap back to resistance near 1500 on the S&P 500.
Unless we can get back to that again tomorrow, and quickly, we could still stair-step our way lower as we may have broken the back of the recent rising channel.
We'll see what happens tomorrow.
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