Closing Analysis

Indices Suffer Biggest Loss of Sell-Off

Closing Technical Market Analysis for Tue April 10th 2012

The stock market indices continue their down slide, and the top is in at this point as you can see we’ve rolled over in the last four or five session. Today was the biggest loss since the sell-off began.

The day started out with a little bit of a pop to the upside, and then an immediate rollover as Apple Inc. (AAPL) cracked and took the Nasdaq 100 with it, along with the S&P 500. The indices stair-stepped their way lower after a brief bounce mid-day to the session lows with about an hour and a half to go. They bounced around and then backed off into the close.

Net on the day, the Dow was down 213.35 at 12,716.24, the S&P 500 down a whopping 23.61, or almost 2% to 1358.59, and the Nasdaq 100 down 44.86 at 2695.12, under 2700 for the first time in a while. The indices closed near the session lows as

Advance-declines were nearly 6 to 1 negative on the New York Stock Exchange and about 5 to 1 negative on Nasdaq. Up/down volume was about 13 to 1 negative on New York, total volume 922 million, with 858 million down shares down and only 61 million to the upside. Nasdaq traded 1.9 billion shares and 1.75 was to the downside, and had a 12 to 1 negative volume ratio.

It was a very ugly day today, and although we’re near support here, this is how a trend starts, with the need to become quite oversold before you bounce them back. board was very negative. Leading the way to the downside, the Direxion Daily Financial Bull 3X Shares (FAS) was down 6.40 to 93.98 as well as the Direxion Daily Small Cap Bull 3X Shares (TNA), down 3.99 to 52.59.

Apple Inc. (AAPL) lost 7.79 to 628.44. Goldman Sachs (GS) dropped 2.46 to 114.56. International Business Machines (IBM) fell 2.61 to 202.33. Netflix, Inc. (NFLX) got hammered for 4.76 to 101.92. Rackspace Hosting, Inc. (RAX) was down 1.60 to 54.65. SolarWinds, Inc. (SWI) dropped 1.90 to 35.42. Questcor Pharmaceuticals, Inc. (QCOR) gave back 1.95 to 39.32, and Cheniere Energy, Inc. (LNG) dropped 1.30 to 14.97.

There were some gainers today. Ultra-short VelocityShares Daily 2x VIX ST ETN (TVIX) was up 1.22 to 9.67, or 14%. The Direxion Daily Small Cap Bear 3X Shares (TZA) jumped 1.36 to 20.72. The Direxion Daily Financial Bear 3X Shares (FAZ) snapped back 1.37 to 23.73.

Other gainers of note included low-priced Chinese stocks, which did very well today, especially NewLead Holdings Ltd. (NEWL), up 1.10 to 2.50, or 78 1/2%. Guanwei Recycling Corp. (GPRC) gained 40 cents to 1.65, or 32%. SmartHeat Inc. (HEAT) jumped 1.01 to 7.20, or 16%. SUPERVALU Inc. (SVU), after earnings, advanced 81 cents to 6.13, or 15%, rounding out the gainers for today..

Stepping back and reviewing the hourly chart patterns, the indices, after a brief pop at the opening, rolled over hard, made lower lows all afternoon, until finally in the last hour they tried to rally back, but only to rollover in the last 10 minutes to close down dramatically on the session and thus far for the week.

We’ll have to see how it goes tomorrow.

Good Trading!


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