Indices Rally Back from Steep Morning Losses
By Harry Boxer, The Technical Trader (
www.thetechtrader.com)
The indices had a topsy-turvy session. They gapped down big at the opening, and then after a brief bounce hit the lows for the session around an hour after the opening near 1700 NDX and 1282 SPX. They had a sharp bounce after S&P announced they could see the light at the end of the tunnel on the write-offs for the banks. A sharp rally ensued, and they then retested successfully, held support just around the lunch hour and then had an equally strong leg in the afternoon. They backed and filled over the last hour and a half into the close, and although they were unable to get through key overhead resistance at 1760 NDX and 1322 S&P, they maintained a large part of the gains for the day and ended up on the day.
The Dow gained 35 1/2, the S&P 500 6.71, and the Nasdaq 100 15.22. The Philadelphia Semiconductor Index (SOXX) was up nearly 4 points today.
The advance-declines did manage to get back into the plus column by a little less than 3 to 2 positive on New York and a like amount on Nasdaq. Up/down volume was positive by 11 to 7 on New York on more than 1.8 billion traded, and by 2 to 1 on Nasdaq on under 2.5 billion shares.
TheTechTrader.com board was mixed and narrowly so for most stocks because they either didn't get quite back into the positive column or they did by just a small fraction.
Big gainers included Deckers (DECK), up 5.90, but 10 points off its morning lows, reversing an earlier sharp 4-point loss. CMG was up 1.93, reversing a 4-point loss and closing 6 points off its low.
Chindex (CHDX) had an excellent session, snapping back almost 4 points from its low, closing up 1.66.
Other gainers of note were WA, up 49 cents, and MBI up 2 cents in the financial services sector. Solarfun (SOLF) was up 82 cents to 10.49, and was our Chart of the Day. XIDE gained 45 cents to a new 3-year high. FuelTek (FTEK) gained 44 cents, Canadian Solar (CSIQ) 75 cents, and portfolio position Converted Organics (COIN) up 67 cents today.
Akeena Solar (AKNS) was down 56 cents and Ascent Solar (ASTI) 45 cents, so you can see the solars were mixed.
Sigma Designs (SIGM) was the big loser, down 4.16 after announcing disappointing earnings, on the heaviest volume in its history, more than 14 million traded today. TBS International (TBSI) lost 1.70 in a weak shipping sector, and DryShips (DRYS) was down only 7 cents and 5 points off its low.Aluminum Corp. of China (ACH), down 1.39.
Stepping back and reviewing the hourly chart patterns, the indices closed with gains on the session after very sharp early losses and held most of the gains .
Tomorrow we'll be watching overhead resistance at 1765 NDX and 1333-34 S&P to see if it was more than just a short covering rally today.
Good trading!
Harry
