Indices Thwarted by Resistance Once Again
By Harry Boxer, The Technical Trader (
www.thetechtrader.com)
The market vacillated in a range today, but the indices started out with a down move followed by a bounce back that looked like bear flags. Despite the fact that the Nasdaq 100 made a nominal new high, the S&P 500 was far from it and couldn't confirm. They rolled over mid-morning and reached the session lows, but they bounced back again, consolidated mid-day and then tried an afternoon rally that took the Nasdaq 100 up to the top of its resistance range of the last 3 sessions, at the 1805-07 zone. At that point the S&P was trailing badly, and they rolled over in the last hour and pulled back to close near the afternoon lows.
Net on the day the Dow down was down 112.67, the S&P 500 down 12.34, and the Nasdaq 100 just 5 1/2. The Philadelphia Semiconductor Index (SOXX) fell 9.44, or about 2 1/2 percent.
The technicals were decidedly negative by 21 to 9 on New York and 20 to 9 on Nasdaq. Up/down volume was also negative by 2 1/2 to 1 on New York and 3 1/2 to 1 on Nasdaq.
So, it was down day for the indices, and TheTechTrader.com board reflected that, as most stocks were lower.
Leading the way to the downside today were DryShips (DRYS) off 2.55, Cepheid (CPHD) 2.43, and Sigma Designs (SIGM) another 2.48, closing under 30.
TBS International (TBSI) dropped 2.01, and Excel Maritime (EXM) 1.56 in the weak shipping sector.
Other losers of note, Washington Mutual(WM) was down 1.06, MBI down 79 cents and ABK down 27 cents in a weak financial services sector.
On the plus side, Mercadolibre (MELI) was up 75 cents. There were several other small fractional gainers, but nothing much to speak of, as our board was generally weak today.
Stepping back and reviewing the hourly chart patterns, key overhead resistance that has thwarted the Nasdaq 100 for the last three days did so again on two occasions today, as the indices backed off, but the S&P 500 is now trailing and weaker.
However, both indices held their rising moving averages on the hourly charts, and the direction is still undecided.
Good trading!
Harry
