Mixed but Generally Positive
By Harry Boxer, The Technical Trader (
www.thetechtrader.com)
The markets ended mixed at the close but generally were positive, and individually many stocks we follow had a terrific session.
The day started out with a sharp move to the upside in the first 10-15 minutes, but then a sharp reversal to the downside took them to the lows for the session. They held support around 1800-02 on the Nasdaq 100 and at around the 1340-42 zone on the S&P 500. From there for the rest of the session until the last half hour or so they rallied in stair-step fashion, with the NDX breaking out to new rally highs and actually taking out the mid-February highs before a late pullback brought them back to retest. The S&P, however, trailed and was unable to even take out yesterday's high in what could be a negative divergence. We'll see how that plays out over the next day or two.
Net on the day the Dow was actually off 16, the S&P 500 up 3, the Nasdaq 100 up 10, and the Philadelphia Semiconductor Index (SOXX) up 0.22. So, it was a mixed session there, with the OEX off 4.43 as well.
The technicals were positive by a little less than 2 to 1 on advance-declines on New York and about 3 to 2 on Nasdaq. Up/down volume was about 3 to 2 positive on New York with about 1 1/2 billion traded. Nasdaq traded just about 2 billion with a little less than 2 to 1 positive on advancing over declining volume.
TheTechTrader.com board was generally higher with many point-plus gainers. Leading the way was the junior solar group, with Canadian Solar (CSIQ) up 3.59 to 21.10 on 3.1 million shares. Ascent Solar (ASTI) gained 1.89, Solarfun (SOLF) 2.18, JA Solar (JASO) 1.03, and Akeena Solar (AKNS) 1 point to close at 6. So, some very strong percentage gains in that group today.
Other stocks of note, portfolio position Chindex (CHDX) jumped to 38, up 2.63 today. Aluminum Corp. of China (ACH) gained 1.55. Converted Organics (COIN) snapped back with a vengeance today, closing at 10.50, up 1.48 on 1.6 million shares. DryShips (DRYS) gained 1.52, TBS International (TBSI) 74 cents, and Excel Maritime (EXM) was near flat in a mixed shipping group.
Chart of the Week GeoResources (GEOI) was up 1.97 to 14.38, and Sigma Designs (SIGM) up 1.09.
On the downside, Lehman (LEH) gave back 1.43, MF Global (MF) 45 cents, and MBIA (MBI) 4 cents in a generally soft financial services group today. Bear Stearns (BSC) was down 31 cents.
Stepping back and reviewing the hourly chart patterns, the indices did well to close mixed today in what I was indicating this morning was likely to be a consolidative-type session. But it actually was better than that despite the mixed close. Negative divergences and failure to confirm are keeping the market from extending this rally. But it still appears likely that that should be the case provided some important short-term support in the 1338-40 zone holds on the S&P 500, as well as the 1780-85 area on the Nasdaq 100, which is quite a ways from here.
Good trading!
Harry
