Mon November 30th 2009
Solid 5-Wave Advance Reverses Morning Losses by Harry Boxer,
www.TheTechTrader.comThe markets started out the week on a positive note after some early session choppiness. They were down early at the get-go, rallied to session highs early on, and then rolled over hard to the session lows before noon. They meandered back and forth, held support and then launched a 5-wave advance over the last three hours to close with a solid advance.
Net on the day the Dow was up nearly 35 at 10344.84, the S&P 500 up 4.14 at 1095.63, and the Nasdaq 100 up just 1.97 at 1767.43. However, that was 17 points off its low, so a big comeback after pressing support. In the case of the SPX, the index tested Friday’s lows and held them.
Advance-declines were about 17 1/2 to 13 positive on New York and nearly dead-even flat on Nasdaq. Up/down volume was about 7 to 6 positive on New York on total volume of about 1 1/3 billion. Nasdaq traded over 1.9 billion and had an 11 to 8 positive volume ratio.
TheTechTrader.com board was mixed, with plenty of point-plus gainers and losers. On the plus side, Goldman Sachs (GS) at 169.66 was up 5.85. The Direxion Financial Bull 3x Shares (FAS) was up 5.33 to 75.43.
In a very upbeat Chinese sector, Origin Agritech (SEED) exploded for 2.52 on 31.6 million to close at 13.52. RINO International (RINO) rose another 1.90 to 34 1/4. China Automotive (CAAS) at 19.35 was up 2.42, reaching as high as 20.63.
Other stocks of note, Revlon (REV) jumped 77 cents to 18.10, Wells Fargo (WFC) 90 cents to 28.04, and Human Genome Sciences (HGSI) 71 cents to 27.82.
The U.S. Oil Fund ETF (USO) was up 65 cents to 39.15, and the Direxion Large Cap Bull 3X Shares (BGU) 45 cents to 49.21.
On the downside, the loss leader by far was American International Group (AIG), which got slammed for 4.90 to 28.40 on 40 1/2 million.
Kongzhong Corp. (KONG) gave back 1.12 to 12.91, and the Direxion Financial Bear 3x Shares (FAZ) was off 1.65 to 19.59.
Stepping back and reviewing the hourly chart patterns they were down early snapped back, and then rolled over hard, but held Friday’s lows and rallied back in a 5-wave advance close near the session highs.
A good start to the week for the indices, however they still closed below key overhead resistance, both price and moving average resistance at 1780 NDX and 1100 SPX.
We’ll see if they have a chance to get through those key resistance levels or whether support’s taken out over the next day or two.
Good trading!
Harry
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