Volatile Down Session Closes Well Off Lows

Technical Trader Closing Brief

The markets got some volatility today, with four swings in either direction, but finally ending down on the session. The day started out with a sharp downward thrust on sharply lower futures. Then they turned around rather quickly and rallied sharply, especially on the Nasdaq 100, reaching the 4-day declining tops lines within an hour or so. The S&P 500 failed to reach its resistance and fell short, but then they rolled over, consolidated, and then accelerated to the downside in mid-afternoon, taking out the lows just nominally but did not follow through. When that occurred they turned right around and rallied in what was the sharpest rally all day. Only a late pullback brought them off the session highs.

Net on the day Dow was down 51.70, the S&P 50 7 1/2, and the Nasdaq 100 13 1/3. The Philadelphia Semiconductor Index (SOXX) was down 5.70.

Advance-declines were 3 1/2 to 1 negative on New York, and a little more than 2 to 1 negative on Nasdaq. Up/down volume was about 3 1/2 to 1 negative as well on New York on total volume of under 1.5 billion. Nasdaq had a 13 to 8 negative ratio, on a little more than 2.1 billion.

TheTechTrader.com board was mostly lower with some big losers, particularly in the shippers, where DryShips (DRYS) lost 8.07, Excel Maritime (EXM) 8.38 and TBSI down 6.13. VMware (VMW) also lost 4.57.

Aluminum Corp. of China (ACH) was down 6.11, Chindex (CHDX) 1.14, and China Medical Technologies (CMED) 1.24 in a weaker Chinese sector today. Home Inns & Hotels (HMIN) was down 2.12.

On the plus side, there were several fractional gainers. Among the few point-plus gainers was Ascent Solar (ASTI), one of our Charts of the week, up 1.60, and Immersion Corp. (IMMR), up 1.26.

Global Solutions (GSOL) snapped back 62 cents, SDS was up 97 cents today, the QID 37 cents, and DUG 27 cents, as these are short ETF instruments.

Stepping back and reviewing the hourly chart patterns, the indices swung back and forth in four major swings today and closed off the session highs but down on the day. We'll see how it goes tomorrow. Overhead resistance is at 2210-15 on the Nadsaq, with the 2180-83 zone as support. S&P resistance is at 1510-12 and support at 1490-92.

Good trading!

Published On Wed, Nov 7 2007, 10:10 GMT

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Technicals Non-Confirming in Narrow Up-Session
Fri, Feb 10 2012, 05:22 GMT
Indices Edge Higher on Afternoon Comeback
Thu, Feb 9 2012, 04:48 GMT
Rally Continues in Volatile Session
Wed, Feb 8 2012, 04:52 GMT
Indices Rally Off Lows to Close Near Even
Tue, Feb 7 2012, 05:24 GMT
Solid Gains, but Substantially Off Highs
Thu, Feb 2 2012, 05:28 GMT

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