Bears in Control to Start the Week
By Harry Boxer, The Technical Trader (
www.thetechtrader.com)
The markets had a very negative session to start out the week, only showing positive results early in the session. Then they sold off steadily and sharply for most of the session, with the indices failing to get over their intraday declining moving averages, even on the 5-minute charts. Late in the day the Nasdaq did bounce, but the S&P 500 did not, and they closed sharply lower.
Net on the day the Dow was down 239.6, the S&P 500 23.39, and the Nasdaq 100 off 43.56. The Philadelphia Semiconductor Index (SOXX) was down 6.31, or about 2 percent.
The technicals confirmed the negative session. Advance-declines were about 3 to 1 negative on both New York and Nasdaq. Up/down volume was 4 1/2 to 1 negative on New York on lighter total volume of 1.16 billion. Nasdaq traded about 1.96 billion and had about a 6 to 1 ratio of declining volume over advancing volume.
TheTechTrader.com board was mixed, mostly lower, with several point-plus losers. Chindex (CHDX) took it on the chin, down 2.10 at 16.20. United Airlines (UAUA) at 7.01 was down 64 cents in a weak airline group. Sequenom (SQNM) gave back 57 cents, and Sigma Designs (SIGM) 38 cents. Eschelon Corp. (ELON) lost 56 cents, and CarMart (CRMT) 94 cents.
Canadian Solar (CSIQ) fell 1.02 today and Energy Conversion Devices (ENER) dropped 1.57. Solarfun (SOLF) down 49 cents and JA Solar (JASO) fell 50 cents.
In the shipping sector, DryShips (DRYS) lost 1.73, Excel Maritime (EXM) 1.32, and TBS International (TBSI) down 50 cents. A-Power Energy (APWR) fell 1.55, and Aluminum Corp. of China (ACH) 1.15 in a soft Chinese sector.
On the plus side, the SDS and QID were up, 2.10 and 1.24, respectively, as would be expected, as they are short ETF instruments. The USO was up 1.25, as oil firmed up.
Stepping back and reviewing the hourly chart patterns, nothing to be said other than it was a negative opening and a negative finish, and they closed near the lows for the day going away, as they broke a couple minor intraday layers of support, one important one, the NDX closing near the rising trendline of the last few weeks. It's going to be important that they stem the tide here, otherwise we're going to get a full retest of the lows here or worse.
So we'll see how it goes over the next day or two, but definitely a negative start to the week, and the bears were in control for sure today.
Good trading!
Harry
