Nasdaq Leads in Upside Reversal
By Harry Boxer, TheTechTrader.com (www.thetechtrader.com)
The markets had a weird session, particularly in the morning when Nasdaq was strong but the blue chips were weak. However, blue chips managed to hold on the steep pullback early on near yesterday's lows, with Nasdaq holding up at a much higher level. The indices then rallied strongly, with the Nasdaq going to new session highs, while the S&P 500 and Dow took them out only slightly. They then went into a 3-4 hour consolidation range with a slightly down-sloping angle, and managed to hold.
In last couple hours they rallied again and took out the highs, and even the S&P joined the party. They actually took out yesterday's rally high on the Nasdaq 100, taking back its entire 62-point slide and then some . The S&P obviously is still trailing but had a positive session. A late pullback prevented them from closing at the highs for the day, but not far off the highs.
Net on the day the Dow was up just 6 and the S&P 500 up 1.71, but the Nasdaq 100 was the story by far, up 33 , points today, and the Philadelphia Semiconductor Index (SOXX) was up about 9 1/3, or more than 2 percent today.
Technicals were rather mixed, particularly in New York, where advance-declines were slightly negative by about 43 issues. Up/down volume was 9 to 7 negative on total volume of about 1.7 billion. Nasdaq was much stronger today, even though advance-declines were only 17 to 13 positive. Up/down volume was 3 to 1 positive, with nearly 2.2 billion traded today.
TheTechTrader.com board was mixed but mostly higher. Leading the way today was portfolio position Global Sources (GSOL), recommended today by City Bank. The stock jumped 1.93 today on 924,000 shares, extremely heavy volume for that stock.
Other stocks of note, portfolio position Vasco Data Security (VDSI) hit a new 5-year high, jumping a point on more than 1.1 million shares. BioCryst Pharmaceuticals (BCRX) gained 90 cents on more than 4 million shares on a contract from the U.S. Department of Health and Human Services. A new portfolio position, Inspire Pharmaceuticals (ISPH), jumped 56 cents today and broke out to a new 52-week high.
On the downside, portfolio position Home Inns & Hotels (HMIN) gave back 1.18, Sigma Designs (SIGM) lost 1.19 on 1.7 million, and Gmarket(GMKT) backed off 52 cents. Aluminum Corp. of China (ACH) fell 42 cents.
Stepping back and reviewing the hourly chart patterns, a negative-looking pattern quickly reversed yesterday afternoon, and they followed through today, particularly on Nasdaq. The S&P managed to get back up to its 40-day moving average and lateral price resistance near 1422 before backing off late in the session.
That's a key level we'll be looking to see whether it can get through. Beyond that is that 1429-30 zone. Key resistance levels on the Nasdaq 100 are the 1799-1800 range which was tested today and beyond that we have the 1810 and then 1820-22 zone.
Support levels to watch are 1775-76 on the Nasdaq 100, and 1417-18 and then 1413 on the S&P.
Good trading!
Harry
