Closing Analysis

Indices End Week on Positive Note RSS

Closing Technical Market Analysis for Fri February 26th 2010

The stock market indices ended the week and the month on an up note, but just barely. They started the day firm, but then rolled over hard on negative economic news but held intraday moving average and price support around the1805 area on the Nasdaq 100 and 1098 on the S&P 500.

Then a sharp rally ensued, moving the NDX from 1805 to 1822 and the SPX at that point from 1098 to 1106 1/2. They backed off, retested the highs, couldn’t get through, and then made lower lows but held secondary support, and then firmed back up towards the highs making a nominal new highs on the SPX and on the NDX but just barely so. Late in the day they pulled back just slightly, but ended up slightly on the positive side.

Net on the day, the Dow was up 4.23 at 10,325.26, the S&P 500 up just 1.55 at 1104.40, and the Nasdaq 100 up 5.77 at 1818.68. Advance-declines were 3 to 2 positive on the New York Stock Exchange, but negative by nearly 200 issues on Nasdaq. Up/down volume was 7 to 5 positive on New York on total volume of about 1.25 billion. Nasdaq 2.2 billion and had about a 6 to 5 positive ratio. board was mostly higher today. There were only a couple point-plus changes. On the plus side, China Agritech (CAGC) at 25 even was up 1.33. Late in the session, there was an explosive move from NuVasive, Inc. (NUVA) on positive news, jumping the stock from 30 to 42 1/2 in seven or eight minutes before it settled back to 40 at the close, up 10.30.

On the downside, the point-plus loser was American International Group (AIG), which lost 2.74 after reporting earnings, closing at 24.77.

Large fractional gainers included the Direxion Financial Bull 3x Shares (FAS) up 93 cents to 74.96 and the U.S. Oil Fund ETF (USO) jumped 71 cents to 38.82, McMoRan (MMR) jumped 41 cents to 17.28, RINO International (RINO) 47 cents to 20.21, Rambus Inc. (RMBS) 47 cents to 21.95, Origin Agritech (SEED) 27 cents to 8.82.

Model Portfolio positions Somaxon Pharmaceuticals (SOMX) gained 24 cents at 3.91, and TASER International Inc. (TASR) jumped 31 cents at close at 7.56.

On the downside, just small fractional losers across the board other than AIG, of course.

Stepping back and reviewing the hourly chart patterns, they were down early, rallied sharply, backed and filled, consolidated, retested before running back up toward the highs and making nominal new highs but they couldn’t press through at the end of the day. They closed up just nominally on the indices but still a positive way to end the week.

Good trading!


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