Closing Analysis

Successful Test of Support

Closing Technical Market Analysis for Thu October 20th 2011

The stock market indices had an interesting day today. They were down in the morning, up in the afternoon, closing mixed on the session with the Nasdaq 100 not able to get back into the positive column. But the technicals were positive, so it was a positive up day in general.

The day started out with a little bit of a move down, and then they started to rally, backed and filled on the NDX in particular. The S&P 500 made a new high and the NDX was nowhere near it. They then rolled over hard, down to 2275 NDX and 1197 S&P 500, but was able to rally midday and come back sharply. In the early afternoon they backed off to retest, and when that was successful they rallied in mid-afternoon to a new high right up to 1220 resistance on the S&P 500. When reaching 2315 on the NDX at the same time, that caused a pullback, which held successfully again, and they bounced again into the close.

Net on the day, the Dow was up 37.16 at 11,541.78, 140 points off the low. The S&P 500 up 5.51 at 1215.39, 18 points off its low. The Nasdaq 100, however, was down 10.52 at 2306.29, 32 points off the low.

The indices closed at the high end of the range for the day.

Advance-declines were 3 to 2 positive on the New York Stock Exchange, and but slightly negative on Nasdaq by about 100 issues. Up/down volume was 2 to 1 positive on New York, with total volume of about 940 million shares traded today. Nasdaq traded just over 2 billion shares and had a about an 11 to 9 1/2 negative volume ratio.

It was close to a neutral day, even though the indices were down, and most of that was because of Apple. board was mixed. The gainers on our board today were InterDigital, Inc. (IDCC) up 2.53 to 48.15, First Solar, Inc. (FSLR) up 1.24 to 52.31, Netflix, Inc. (NFLX) 2.06 to 111.48, Travelzoo Inc. (TZOO) 1.62 to 32.40, Inc (YOKU) 1.20 to 20.67, Riverbed Technology, Inc. (RVBD) 2.01 to 24.53, and Cubist Pharmaceuticals Inc. (CBST) 3.50 to 39.92, which was a big day for the stock.

The big percentage gainer today was Orsus Xelent Technologies Inc. (ORS), up 1.32 to 3.76, or 54%, on 1.2 million shares.

Other percentage gainers included Uranium Resources, Inc. (URRE), up 31 cents to1.39, or 29%; NetScout Systems Inc. (NTCT) 2.63 to 15.87, or 20%; Select Comfort Corporation (SCSS) 3.30 to 19.42, or 21%; Ocz Technology Group Inc. (OCZ) 1.06 to 6.35, or 20%; and Buffalo Wild Wings Inc. (BWLD) 4.14 to 62.18, or 7%.

On the downside, Apple Inc. (AAPL) was down 3.31 to 395.31, Universal Display Corp. (PANL) down 1.59 to 46.70, and Green Dot Corporation (GDOT) 92 cents to 31.21.

Some of the ultra-shorts didn’t fare too well today. The Direxion Daily Financial Bear 3X Shares (FAZ) was down 2.32 to 48.72, and IPG Photonics Corporation (IPGP) lost 2.04 to 47.00.

Stepping back and reviewing the hourly chart patterns, the indices were down in the morning, up early afternoon, backed off in the afternoon late in the day, but came on into the close to finish mixed on the day, but mostly positive on the technicals.

Let’s see what tomorrow may bring. Today was an important test of support that was successful.

Good Trading!


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- Harry Boxer

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