Wed October 7th 2009
Consolidation Day Closes Strong, Ends Mixed by Harry Boxer,
www.TheTechTrader.comThe markets were mixed at the close, as today was mostly a consolidation-type day until the last hour or so. The indices vacillated between 1700 and 1710 on the Nasdaq 100 and between 1050 and 1057 on the S&P 500 over the first couple hours. Then they meandered sideways, drifted lower, tested the lows, and when that was successful they moved steadily higher over the last two hours of trading.
Net on the day the Dow was down 5.67 at 9725.58, but came back 50 points. The S&P 500 closed up 2.86 to 1057.58, just off the high for the day, and the Nasdaq 100 up 5.20 at 1710.45, the exact high for the day.
Advance-declines managed to edge into the positive column by 190 issues on New York, but were negative by 29 issues on Nasdaq. So it was a very mixed picture at the close. Up/down volume was barely ahead on New York on total volume of just 1 billion. Nasdaq traded 2.1 billion and had about a 4 to 3 positive volume ratio.
TheTechTrader.com board was narrowly mixed with a few outstanding gainers. Goldman Sachs (GS) broke through 190 today, up 3.50 to 190.48, and is now up 300% since last November’s lows. American International Group (AIG) closed up 1.07 to 45.90, and the Direxion Financial Bull 3x Shares (FAS) was up 2.12 to 83.42. Other financials were firm, with JP Morgan (JPM) up 79 cents to 45.70 and Wells Fargo (WFC) up 60 cents to 29.26.
Other stocks of note, low-priced biotech DepoMed (DEPO) was up 52 cents to 5.79 on more than 1.1 million. Portfolio position Alpha Pro Tech (APT) jumped 46 cents to 6.20, and tagged 6.30 intraday, a new all-time high. Portfolio position Spreadtrum Communications (SPRD) advanced 41 cents to 5.45. RINO International (RINO) added 62 cents to 22.97, and Rambus (RMBS) 90 cents to 17.65.
On the downside, no stocks were down as much as a point. In fact, no stocks were down as much as a half a point on our regular list. On the ETF list, the U.S. Oil Fund ETF (USO) dropped 58 cents on lower oil to 35.96. The Direxion Financial Bear 3x Shares (FAZ) gave back 55 cents to 20.02, and the Direxion Large Cap Bear 3X Shares (BGZ) 22 cents to 21.20.
Stepping back and reviewing the hourly chart patterns, the indices basically had a consolidation day, in which they vacillated in the morning, pulled back and retested mid day & early afternoon, and then ran steadily over the last two hours near the high for the day but did not break out yet.
However, the overall patterns do appear orderly and corrective, and we could very well get a break to the upside tomorrow which breaks the key declining tops lines as well. They closed right near them, and that would be a key technical event if that were to occur.
Good trading!
Harry
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