Closing Analysis

Volatile Day for the Market RSS

Closing Technical Market Analysis for Thu October 20th 2016

The stock market indices had a very volatile, back-and-forth, narrowing kind of session. Large intraday wedges formed, wedges were not able to be taken out, and support at rising bottom lines held all day, but they finished the day with losses.

Net on the day, the Dow was down 40.27 at18,162.35, 33 points off the low and 80 points off the highs. The S&P 500 was down 2.95 at 2141.34, 8 points off the low and 6 points off the high. The Nasdaq 100 down 3.11 at 4836.61, 27 points off the low and 10 points off the high.

Advance-declines were 16 1/2 to 12 negative on the New York Stock Exchange, and 15 to 13 negative on Nasdaq. Up/down volume was 9 to 7 positive on New York, total volume of 3 1/3 billion shares traded. The Nasdaq traded 1.7 billion shares and had a 9 to 8 negative volume ratio. board was mostly narrowly mixed, with stocks up and down as much as a point. The Priceline Group Inc. (PCLN) was down 91 cents to 1468.29, Alphabet Inc. (GOOG) down 4.59 to 796.97, Apple Inc. (AAPL) down just 6 cents to 117.06,, Inc. (AMZN) 7.37 to 810.32, and Netflix, Inc. (NFLX) was up 1.48 to 123.35, following earnings.

Baidu, Inc. (BIDU) gave back 1.03 to 175.17, Facebook, Inc. (FB) dropped 11 cents to 130.00, and First Solar, Inc. (FSLR) closed up 38 cents to 42.08.

Tesla Motors, Inc. (TSLA) lost the exact amount it gained yesterday, down 4.46 to 199.10.

The biotech group had a good day. Puma Biotechnology, Inc. (PBYI) had a big reversal, up 1.10 to 43.80, NVIDIA Corporation (NVDA) up 1.26 to 67.73, and Clovis Oncology Inc (CLVS) 1.87 to 34.47,

Aerie Pharmaceuticals, Inc. (AERI) ran 89 cents to 36.41, Abeona Therapeutics Inc. (ABEO) closed up 94 cents to 8.70, and Exact Sciences Corporation (EXAS) bounced 70 cents to 20.15.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) jumped 1.79 to 35.35.

On the downside, Acacia Communications, Inc. (ACIA) was down 2.93 to 85.44.

Checking percent-gain leaderboard, Ceragon Networks Ltd. (CRNT) closed up 48 cents to 2.68, or 22%, on 1.7 million shares traded. SkyPeople Fruit Juice, Inc. (SPU) gained 90 cents to 7.00, or 15%, one million shares traded.

DragonWave Inc. (DRWI), with a big contract with Sprint Inc. (S), advanced 2.08 to 4.29, or 94%, on 24 million shares traded, or 8,000% more volume than average. Moleculin Biotech, Inc. (MBRX) ran 1.64 to 4.33, or 61%, on 1.6 million shares traded. Everyday Health, Inc. (EVDY) climbed 1.20 to 9.40, or 15%, on nearly a million shares traded.

Comstock Resources Inc. (CRK), in the energy sector, jumped 1.15 to 10.22, or 13%, on 1.8 million shares traded. American Express Company (AXP), on strong earnings, was up 5.53 to 66.78, or 9%, on 25 million shares traded.

Stepping back and reviewing the hourly chart patterns, after opening lower, and coming down sharply in the first ten minutes, the indices sharply snapped back, and then sharply went back down, making lower lows, and session lows at midmorning. A very sharp rally brought them back up to the highs, but they couldn’t get through. They then backed and filled in narrowing ranges all day, finishing lower on the day, but it wasn’t too bad.

We’re at a point, an inflection point, in my opinion, and in the next day or two we should get a very dramatic move either up or down. It’s hard to call which way right now.

Let’s see what happens tomorrow.

Good Trading!


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- Harry Boxer

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