Closing Analysis

Blue Chips Positive in Mixed, Choppy Session

Closing Technical Market Analysis for Wed November 9th 2011

The stock market indices had a very difficult, tedious, and choppy session today. The blue chips managed to finish positive despite a 2-point loss on the Nasdaq 100, which was under pressure due to Apple (AAPL) being down 10 points.

The day started out with a gap up, and then they quickly reversed, and sharply so. The Nasdaq 100 dropped from 2339 to 2290, and the S&P 500 from 1245 down to test yesterday’s double bottom around the 1227-28 area. In a choppy, 3-wave action, they ran back from 2290 to 2326 on the NDX, and from the 1227-28 area to 1246 on the S&P 500, and then they backed off in an orderly fashion. They bounced in the last hour only to pull back in the last few minutes.

Net on the day, the Dow was up 113.07 at 11,894.01, but I can’t remember a day when the Dow was up that much and it didn’t feel like it. The S&P 500 was up 10.59 to 1239.69, and the Nasdaq 100 was down 2.03 at 2312.07.

Advance-declines were more than 2 to 1 positive on the New York Stock Exchange, and 3 to 2 positive on Nasdaq. Up/down volume was 2 1/2 to 1 positive on New York, with total volume of 880 million shares traded today. Nasdaq traded 1.85 billion shares and had an 11 to 7 positive volume ratio. board was decidedly mixed with many gainers and losers of multiple points. On the downside, AAPL, as noted, lost 10.06 to 385.22. Green Mountain Coffee Roasters Inc. (GMCR) got crushed today for 26.13 to 40.89, or 39%. OPNET Technologies Inc. (OPNT) fell 9.68 to 35.68 after its earnings release, and SodaStream International Ltd. (SODA) dropped 3.13 to 32.90.

Ultra-short VelocityShares Daily 2x VIX ST ETN (TVIX) really got crushed based on the market rally, falling 8.16 to 55.08. Other than that most of the ultra-shorts were unchanged today.

It was quite an interesting, confusing picture today.

On the upside, International Business Machines Corp. (IBM) gained 1.11 to 183.35, InterDigital, Inc. (IDCC) rose 1.65 to 44.03, and low-priced Flotek Industries Inc. (FTK) was up 1.03 to 8.45.

Leading the way today on strong news from the Baltic Index, Genco Shipping & Trading Ltd. (GNK) jumped 1.03 to 9.65, and EnerSys (ENS) advanced 4.16 to 26.22.

Stepping back and reviewing the hourly chart patterns, the indices were very choppy, up early, down mid-morning, and back up into early afternoon before a pullback into the last 45 minutes or so successfully tested the midday lows, which led to a bounce near the close. They finished positive on the session for the Dow and S&P 500, but the NDX, with the pressure from Apple, was not able to get into the positive column.

Key support is being tested in these zones. It’s a critical time for the indices.

Good Trading!


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- Harry Boxer

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