Losses Across the Board
By Harry Boxer, TheTechTrader.com (www.thetechtrader.com)
The indices suffered losses cross the board, despite the fact they started strongly after the pre-market futures were higher. The Nasdaq 100 got up just beneath its highs for the week. The S&P 500 made a nominal new 6-year high this morning, and when that was not confirmed by the NDX they sold off sharply, bounced mid-session, failed at resistance and sold off just as sharply in the afternoon in a 3-wave decline that closed the indices near the lows for the day going away.
The Dow was down just 31, the S&P 500 down 5.61, and the Nasdaq 100 down nearly 22 points. The Philadelphia Semiconductor Index (SOXX) fell nearly 2 percent, or 8.27, chiefly the reason why the NDX was down as steeply.
Technicals were negative by 3 to 2 on advance-declines on New York and a like amount on Nasdaq. Up/down volume was a little less than 2 to 1 negative on New York with total volume of about 1.43 billion. Nasdaq traded over 2 billion with a less than 2 to 1 negative ratio as well on volume.
TheTechTrader.com board was narrowly mixed for the most part with a few outstanding gainers. The leader by far today was Vanda Pharmaceuticals (VNDA), which exploded on strong drug news & upgrades, gaining 10.65 on 11 million shares. It was the Nasdaq's percent gain leader today, up 67 percent.
Genomic Health (GHBX) jumped nearly 2 points today, and various Chinese stocks had positive sessions. China Techfaith Wireless(CNTF) was up 1.26, exploding in the last few minutes, closing near the highs for the day.
Halozyme Therapeutics (HTI) in the biotech sector was the second-leading Amex gainer today, up 26%, or 1.18, today.
On the downside, China Medical (CMED) gave back 1.17, the only point-plus loser on the board. Fuel Tech (FTEK) lost 83 cents, Energy Conversion Devices (ENER) 74 cents, Angeion (ANGN) 56 cents, Acorda Therapeutics (ACOR) 58 cents, China GrenTech (GRRF) 48 cents, and Trio-Tech (TRT) 41 cents.
Stepping back and reviewing the hourly chart patterns, today's decline and particularly during the afternoon rollover, severely tested SPX 40-day moving average support on the hourly charts and NDX intermediate trendline support. So, unless they alter the decline right in this region, they're in danger of much steeper losses and breaking key support.
Good trading!
Harry
