Mon July 27th 2009
Indices Refuse to Give Wayby Harry Boxer,
www.TheTechTrader.comIndices Refuse to Give Way
By Harry Boxer, The Technical Trader (www.thetechtrader.com)
The stock market indices had a difficult start to the morning, but once again held support and came back in a 5-wave rally to close at the highs for the day going away. Sound familiar? It was nearly the same pattern as Friday.
Net on the day the Dow was up 15.27 to 9108.51, about 80 points off its low, and the S&P 500 up 10.92 to 982.18, some 10 points off its low. The Nasdaq 100 up 0.25 to 1599.31, 19 points off its low. The Philadelphia Semiconductor Index (SOXX) closed up 1.76 to 302.64.
Advance-declines were nearly 2 to 1 positive on New York and less than 3 to 2 positive on Nasdaq. Up/down volume was just a little less than 2 to 1 positive on New York on light total volume of just over 1 billion. Nasdaq traded over 2.1 billion and had about a 2 to 1 positive volume ratio.
TheTechTrader.com board was narrowly mixed, with a few point plus gainers and losers.
On the plus side, the junior biotechs had a big day. Jazz Pharmaceuticals (JAZZ) gained 1.92 to 6.30, a 44 percent advance. BioCryst Pharmaceuticals (BCRX) closed at 10.95, up 1.46 on more than 5 million. Novavax (NVAX) was up 73 cents to 4.23, Acadia Pharmaceuticals (ACAD) up 99 cents to 4.40, Cornerstone Therapeutics (CRTX) up 47 cents to 9.47, and Targacept (TRGT) up 66 cents at 10.44.
Other stocks of note, AgFeed Industries (FEED) gained 68 cents to 6.43, and DryShips (DRYS) 85 cents to 7.08. New portfolio position Brigham Exploration (BEXP) advanced 55 cents to 4.73 on 3.7 million.
The Direxion Financial Bull 3x Shares (FAS) was up 2.24 at 53.73, and the Direxion Financial Bear 3x Shares (FAZ) down 1.65 at 37.06.
That was the only point-plus loser on our board today.
Stepping back and reviewing the hourly chart patterns, after a mixed opening and backing and filling, the indices dropped sharply but held support, rallied back in a 5-wave advance, closing near the high for the day going away on the SPX and just beneath it on the NDX. We’ll see what kind of follow-through we get from the current 3-day consolidation pattern. But right now the indices refuse to give way and still remain in an uptrend.
Good trading!
Harry
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