Closing Analysis

Dow Above 11,000 as Indices Rally Late RSS

Closing Technical Market Analysis for Fri October 8th 2010

The stock market indices ended the week with a bang, closing the S&P 500 near the 2010 highs. The day started out with some backing and filling, and then a rollover, but that held support. When that occurred, the indices rallied very sharply, pulled back mid-day and then rallied back into the close. With about five minutes left, they backed off in some late profit taking, but still closed above 11,000 on the day.

Net on the day, the Dow was up 57.90 at 11,006.48. The S&P 500 was up 7.09 at 1165.15, and the Nasdaq 100 was up 15.40 at 2027.03.

Advance-declines were 3 to 1 positive on the New York Stock Exchange and 2 1/2 to 1 positive on Nasdaq. Up/down volume was about 3 1/2 to 1 positive on New York, but the volume was a light 935 million today. Nasdaq traded over 1.9 billion and had about a 2 to 1 positive ratio on advancing volume over declining volume. board experienced many multi-point gainers today. Leading the way was Apple Inc. (AAPL), up 4.85 to 294.07, right near its all-time high.

Goldman Sachs (GS) advanced 1.55 to 152.66, LogMeIn, Inc. (LOGM) 1.42 to 34.52, and swing trade pick McMoRan Exploration Co. (MMR) 1.09 to 19.09 to a new 2010 high. Isilon Systems, Inc. (ISLN) gained 1.00 to 26.14, Neurocrine Biosciences Inc. (NBIX) 1.00 to 7.34, and Rofin-Sinar Technologies Inc. (RSTI) 1.92 to 27.89.

In addition, MGM Resorts International (MGM) jumped 1.82 to 13.53, a big percentage gain there. China Agritech Inc. (CAGC) was up 1.68 to 12.75, Approach Resources, Inc. (AREX) 85 cents to 13.40, and Atlantic Tele-Network, Inc. (ATNI) 2.63 to 54.45 today as it was included in the major indexes.

Also higher today, China Integrated Energy, Inc. (CBEH) was up 1.47 to 8.03, and CarMax Inc. (KMX) 1.59 to 29.67. Sonic Solutions (SNIC) gained 84 cents to 12.32, Fuqi International, Inc. (FUQI) up 1.79 to 8.14, Intrepid Potash, Inc. (IPI) 2.16 to 28.93, Origin Agritech Limited (SEED) 62 cents to 8.88, and Radware Ltd. (RDWR) 85 cents to 32.26.

On the downside, JinkoSolar Holding Co., Ltd. (JKS) dropped 1.81 to 26.76 and VirnetX Holding Corp (VHC) 1.02 to 15.08, along with Green Mountain Coffee Roasters Inc. (GMCR), one of our Boxer Shorts, down another 1.06 to 26.98 today. Inc. (AMZN) lost 72 cents to 155.55, and Sourcefire, Inc. (FIRE) 57 cents to 26.80.

Among the ETF ultra-shorts, the Direxion Daily Small Cap Bear 3X Shares (TZA) gave back 97 cents to 23.82, and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) dropped to an all-time low at 15.40, down 74 cents. The Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) lost 87 cents to 24.28.

Stepping back and reviewing the hourly chart patterns, not only did the indices rally late, but they took out the highs on the S&P 500 and slightly so on the NDX, but not convincingly and thus not confirming.

We’ll see if we can get a follow-through Monday to do that or whether resistance becomes futile and they back them off here.

Good Trading!


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- Harry Boxer

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