Closing Analysis

Bears Fail to Capitalize in Mixed Session

Closing Technical Market Analysis for Mon January 24th 2011

The stock market indices had a mixed session, moving back and forth all day. The Nasdaq 100 moved eight different directions today and then spiked up in the last hour, breaking out through resistance, although the S&P 500 did not confirm the breakout with one of its own.

Net on the day, the Dow was down 3.33 at 11,977.19, about 80 points off its low. The S&P 500 was up 0.34 at 1291.18, about 10 points off its low. The Nasdaq 100 was up 3.64 at 2304.03, 21 points off its low.

Advance-declines did edge into the plus column by about 8 to 7 on the New York Stock Exchange, while Nasdaq was about 7 to 6 negative. Up/down volume was about 3 to 2 negative on New York on total volume of just around 1 billion. Nasdaq traded just under 1.9 billion shares and had 5 to 4 negative ratio. board, as a result, was mostly narrowly mixed with the majority of them to the downside. However, many stocks we follow were up today. Larger-cap stocks like Baker Hughes Incorporated (BHI) did well, with BHI up 3.82 to 62.32. Ethan Allen Interiors Inc. (ETH) gained 2.23 to 23.09, Corning Inc. (GLW) 1.58 to 21.22, Quest Diagnostics Inc. (DGX) 2.12 to 56.29, Ashland Inc. (ASH) 4.18 to 57.44, Clinical Data, Inc. (CLDA) 1.60 to 26.77, NXP Semiconductors NV (NXPI) 1.62 to 24.27, and Harley-Davidson, Inc. (HOG) 2.93 to 39.42.

There were quite a few lower-priced stocks that were active and up, including Cavico Corporation (CAVO), which jumped 55% to 2.65, up 95 cents today. Casella Waste Systems Inc. (CWST) was up 51 cents to 8.05, Pluristem Therapeutics, Inc. (PSTI) 70 cents to 3.95, QuickLogic Corp. (QUIK) 45 cents to 5.89, Radvision Ltd. (RVSN) 92 cents to 10.44, USA Technologies (USAT) up 27 cents to 1.80, YRC Worldwide (YRCW) 40 cents to 4.23, and Glu Mobile, Inc. (GLUU) 49 cents to 2.80.

On the downside, point-plus losers included Goldman Sachs (GS) down 4.23 to 161.98, and Acme Packet, Inc. (APKT) down 1.82 to 49.99. Those were the only point-plus losers on our board today.

Stepping back and reviewing the hourly chart patterns, the indices vacillated in a 15-point range on the Nasdaq 100, but then closed through that range at the end of the day at 2303.41, up 3.64 and at the high for the day on the Nasdaq 100. The S&P 500 also closed at the high for the day, and right at resistance at 1291. That was off the 1281 low.

So an indecisive day, but the bears had an opportunity to do some damage and could not get any downside follow-through in late afternoon trading, which was reversed sharply in the last hour by the bulls.

We’ll see what kind of follow-through the bulls can get tomorrow.

Good Trading!


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- Harry Boxer

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