Harry Boxer
The Technical Trader
The stock market indices had an ugly session, particularly early morning when the markets gapped down sharply, taking out support. They managed to bounce back near resistance, but couldn't get through. The topping patterns that we are seeing are very ominous and could lead to even more sharply lower levels, but it remains to be seen whether they get any downside follow-through. The levels to watch are the 4421 Nasdaq 100 and 2087 S&P 500.
Net on the day, the Dow was down 106.47 at 18,096.90. The S&P 500 was down 9.25 at 2098.53. The Nasdaq 100 was down 13.42 at 4445.36.
Advance-declines were 3 to 2 negative on the New York Stock Exchange, and 7 to 6 positive on Nasdaq. Up/down volume was 2 to 1 negative on New York, with total volume of 3.3 billion shares. Nasdaq traded over 1 3/4 billion shares, and had a 9 to 8 negative volume ratio.
TheTechTrader.com board was mixed. Priceline.com Incorporated (PCLN) was down 16.36 to 1225.67, Google Inc. (GOOG) down only 27 cents to 573.37, Apple Inc. (AAPL) down only 82 cents, Amazon.com Inc. (AMZN) 1.89 to 382.72, and Netflix, Inc. (NFLX) 4.94 to 469.77.
Pharmacyclics Inc. (PCYC), however, exploded 13.71 to 230.48, and Tesla Motors, Inc. (TSLA) jumped 2.88 to 202.43.
Ambarella, Inc. (AMBA) was up 4.44 to 67.49, Celldex Therapeutics, Inc. (CLDX) on nice volume up 2.93 to 29.30, GW Pharmaceuticals (GWPH) 2.02 to 81.57, GoPro, Inc. (GPRO) 2.71 to 43.01, Facebook, Inc. (FB) 1.29 to 80.89, and Cyber-Ark Software Ltd. (CYBR) 1.29 to 59.31.
Bristol-Myers Squibb Company (BMY) had a wonderful day, up 3.75 to 65.67, on an FDA approval on a new cancer drug. NewLink Genetics Corporation (NLNK) ran 3.39 to 49.53, Tekmira Pharmaceuticals Corp. (TKMR) gained 1.52 to 19.78, and ZIOPHARM Oncology, Inc. (ZIOP) popped 85 cents to 13.34, on 8.8 million shares.
Other stocks to the downside included Splunk, Inc. (SPLK) down 2.01 to 63.67, and Arista Networks, Inc. (ANET) down 1.97 to 67.42.
Checking the TheTechTrader.com percent-gain leaderboard, Novogen Limited (NVGN) advanced 86 cents to 3.36, or 34%, on 19 million shares. Career Education Corp. (CECO) gained 87 cents to 6.00, or 17%, on 2.7 million shares.
Infosonics Corp. (IFON) was clearly the winner today, up 1.01 to 2.71, or 60%, on 6.5 million shares, nearly 5000% more volume than average. Capnia, Inc. (CAPN) ran 1.25 to 8.75, or 17%, on 2.1 million shares after reaching 9.90 earlier today.
Among other gainers, Natural Health Trends Corp. (NHTC) was up 2.39 to 15.88, Wayfair Inc. (W) up 3.65 to 28.90, 500.com Limited (WBAI) up 1.39 to 12.16, Autohome Inc. (ATHM) 4.21 to 42.61, Smith & Wesson Holding Corporation (SWHC) 1.29 to 14.34, and Ocular Therapeutix, Inc. (OCUL) 3.24 to 39.22.
Stepping back and reviewing the hourly chart patterns, after a gap down and a sharp slide, they bounced back and took back about a .618 Fibonacci retracement, only to rollover midafternoon, retrace that move, and then bounce into the close and back and fill.
It was a negative day, but not as bad as it looked. However, the overall pattern is looking very toppy, and with the moving averages rolling over on the hourly charts, I would be very careful going forward here.
Let's see what happens tomorrow.
Good Trading!
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