Markets Make Little Headway, End Mostly Narrowly Higher
By Harry Boxer, TheTechTrader.com (www.thetechtrader.com)
The stock market barely made any headway today. But the start was strong. The futures were up on strong pre session economic news, and the market opened higher, but that was about it. They sold off sharply in the morning, held secondary support, and then bounced back and forth in a coiling-type pattern. In the last hour they attempted a rally and did break out, but there was very little follow-through and they backed and filled into the close.
Net on the day, the Dow was up less than 2 points, the S&P 500 up 1.66, and the Nasdaq 100 up 1.47. A chief factor today was the weakness all day in the semiconductor group, with the Philadelphia Semiconductor Index (SOXX) down 5.82 .
The technicals were slightly negative by about 80 issues on New York and about 70 issues on Nasdaq. Up/down volume was barely ahead by less than 7 to 6 on New York on total volume of more than 1.4 billion. Nasdaq was about a 9 to 8 1/2 positive ratio on up/down volume on total volume of more than 1 ¾ billion.
TheTechTrader.com board was mostly just fractionally changed, with a few outstanding issues. Progen Industries Ltd. (PGLA) announced positive results on its liver cancer drug and gapped up and ran hard until mid afternoon. At one point it was up more than $5 , and closed up $3.53 to $6.48 on 7 1/4 million shares today. Global Sources (GSOL) followed up on Monday's run, up another 1.23 today, closing at 17.70 on nearly ¾ million shares.
Fuel Tech (FTEK) advanced 62 cents, Chindex (CHDX) 43 cents, and Acorda Therapeutics (ACOR) 40 cents. NeoMagic (NMGC) had a strong percentage gain, up 62 cents, or more than 11%, on more than half million shares today.
On the downside, Chinadotcom (CHINA) gave back 71 cents, Allos Therapeutics (ALTH) 47 cents, and China Techfaith (CNTF) 40 cents. The only point-plus loser on the board was NVE Corp. (NVEC), down 1.26.
Stepping back and reviewing the hourly chart patterns the indices on three occasions today tested the 1774-75 zone on the NDX, which was right on its intermediate trendline, but that level held all day. The S&P performed a bit better, although it did have a triple bottom in the 1411-1411 , area today. The late rally was encouraging, but indices are still mired in a trading range. The NDX closed under its moving averages on the hourly charts, and the S&P 500 closed just above them. So it's a mixed picture, and we'll have to see which way they break.
Good trading!
Harry
