Another Nasty Reversal Day

The stock market indices did have a turn-around Tuesday, but it wasn't the kind we wanted. The markets exploded in the morning, and it looked like a big rally was there, but, again, the 4200 range was very difficult for the market to reach. It got up to 4207 briefly, and then plunged over the course of the rest of the day, particularly in the last hour, when the markets gave it all back and then some, and closed down on the day.

Net on the day, the Dow went from 16,312 down to 15,666.44, reaching a low of 15,651.24, down 204.91, a complete 750-point reversal. The S&P 500 was down 25.60 to 1867.61, trading as high as 1948.04, an 81 point drop from high to low. The Nasdaq 100 went from 4207 to 4015, and closed at 4016.32, down 22.28, a 200-point drop.

Advance-declines were sharply higher by 5 to 1 at one point, but closed at 17 to 14 negative on New York Stock Exchange and 4 to 1 negative on Nasdaq. Up/down volume was 4 to 1 negative on New York, with total volume of 5 billion shares. Nasdaq traded 3 1/2 billion shares, and had a 15 to 11 negative volume ratio.

TheTechTrader.com board did have some multiple-point winners today. They included Priceline, which traded at 1269 earlier, up 4.69 to 1178.81, Amazon.com Inc. (AMZN) up 3.00 to 466.47, and Netflix, Inc. (NFLX) up 4.64 to 101.52, after reaching 107.88 earlier in the day. Apple Inc. (AAPL) managed to eke out a 62-cent gain, closing at 103.74.

Tesla Motors, Inc. (TSLA) ran 1.16 to 220.03. Celldex Therapeutics, Inc. (CLDX) jumped 1.06 to 13.97, but still 90 cents off its high. The volatility was extraordinary today. The ProShares Ultra VIX Short-Term Futures (UVXY) was all over the place, closing up 8.98 to 66.28.

Down on the day, SunEdison, Inc. (SUNE) got hammered 1.93 to 8.80, down 18%, on 68 million shares. Esperion Therapeutics, Inc. (ESPR) down another 1.70 to 50.26, after trading over 55.00. CyberArk Software, Ltd. (CYBR) dropped 1.84 to 46.71, but reached as high as 52.00.

It was a nasty, nasty reversal day. Don't know what the consequences are yet, and whether we'll get a downside follow-through, or this was just a retest of the lows, but they're perched precariously on those lows, and could get creamed. The Mcclellan Oscillator is back to minus 248. The tick did get to 1330 at one point today. So there have been some strong extremes down here, but it doesn't appear that we're there yet.

Let's see how it goes tomorrow.

Good Trading!

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