Closing Analysis

Mixed, Choppy Session RSS

Closing Technical Market Analysis for Thu October 28th 2010

The stock market indices closed mixed today after a choppy session. The day started out with a gap to the upside, as the Nasdaq 100 ran to new highs at 2135.69, while the S&P 500 reached above 1189.53. They then rolled over in a 3-wave decline and formed a falling wedge.

At that point they reached as low as 2112 on the NDX and 1177 on the S&P 500. They worked their way back, broke through morning resistance on the NDX, but struggled on the SPX, although late in the session they came on again, reached near the session highs on the NDX, and fell about 3 points short on the S&P 500 before backed off in the last 10 minutes. Still, the Nasdaq and S&P 500 were up slightly, and the Dow was off slightly in a mixed session.

Net on the day, the Dow was down 12.33 at 11,113.95. The S&P 500 was up 1.33 to 1183.78. Nasdaq 100 was up 3.85 to 2129.73.

Advance-declines were positive by 50 issues on Nasdaq. The up/down volume was negative by a very slight margin on the New York Stock Exchange. Total volume was light today with about 950 million shares traded. Nasdaq advance-declines were 15 to 11 negative, but up/down volume was about 11 to 9 positive with a total volume of about 2 billion. board was active, with several point-plus gainers. Golden Minerals Company (AUMN) was up 2.12 to 27.40, Goldman Sachs (GS) up 3.09 to 163.24, and 3D Systems Corp. (TDSC) 4.11 to 24.27, a big gainer today.

Other stocks of note were Ebix Inc. (EBIX) up 92 cents to 25.56, Blue Coat Systems Inc. (BCSI) 59 cents to 27.03, VirnetX Holding Corp (VHC) 88 cents to 18.65, low-priced USEC Inc. (USU) 42 cents to 5.38, China Nepstar Chain Drugstore Ltd. (NPD) 47 cents to 5.08, and RiT Technologies Ltd. (RITT) 82 cents to 6.42.

On the downside, Apple Inc. (AAPL) lost 2.59, but closed nearly 5 points off its low, at 305.24. Sourcefire, Inc. (FIRE) got slammed after earnings, down 7.26 to 23.73. Rare Element Resources Ltd. (REE) had a big negative reversal, reaching as high as 14 early on, dropping to 10 3/4 before settling at 11.30, down 1.47 on 16.5 million shares. Polypore International Inc. (PPO) dropped 1.18 to 33.60, and Acacia Research Corporation (ACTG) 1.21 to 25.98.

Those were the loss leaders on our board today.

Stepping back and reviewing the hourly chart patterns, the indices came down with the Nasdaq 100 reaching its trend line and moving average support on the hourly charts before bouncing in the early afternoon part of the session. The S&P 500, which appears to be forming a head-and-shoulders type top, did hold the morning lows not far from support.

We’ll see if they continue to press higher or finally roll over.

Good Trading!


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- Harry Boxer

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