Closing Analysis

Very Negative Session With Failed Bounce Back Attempt

Closing Technical Market Analysis for Thu May 3rd 2012

The stock market indices had a very negative session. They opened, immediately dropped, snapped back, moved in a 5-wave decline, and hit the session lows with about an hour to go, the Nasdaq 100 just under 2700, and right about the 1388-9 zone on the S&P 500. They bounced back late in the day to test resistance, but when that failed to be taken out, they rolled back into the close.

Net of the day, the Dow was down 61.98 at 13,206.59, the S&P 500 down 10.74 at 1391.57, and the Nasdaq 100 was the biggest loser, down 30.18 at 2704.59.

Advance-declines were about 21 to 9 negative on the New York Stock Exchange, and about 19 to 6 negative on Nasdaq. Up/down volume was 4 to 1 negative on New York, total volume 817 million. Nasdaq traded 1.8 billion, and had a 6 to 1 negative volume ratio.

It was a decidedly negative day on Wall Street today. board was mixed. Leading the way on the downside, Apple Inc. (AAPL) was down 4.16 to 581.82, Coinstar Inc. (CSTR) down 1.70 to 64.10, Goldman Sachs (GS) 2.24 to 111.53, Nu Skin Enterprises Inc. (NUS) 3.00 even to 45.01, Questcor Pharmaceutical (QCOR) 1.86 to 43.52, and Inc. (STMP) 1.50 to 28.81.

Netflix, Inc. (NFLX) really got hammered, down 6.26 to 75.97. SodaStream International Ltd. (SODA) also got hammered, down 3.36 to 31.07.

The The Direxion Daily Small Cap Bull 3X Shares (TNA) lost 2.53 to 56.77, and the Direxion Daily Financial Bull 3X Shares (FAS) dropped 2.71 to 101.41.

On the plus side, there were some nice percentage gainers. Infosonics Corp. (IFON) jumped 45 cents to 1.25, or 56%, on 1.8 million shares due to good earnings. VirnetX Holding Corp (VHC), on positive rulings, ran 5.24 to 28.56, or 22 1/2%, on 5.3 million shares. Ellie Mae, Inc. (ELLI) gained 2.60 to 15.36, or 20%. Atlantic Tele-Network, Inc. (ATNI) was up 6.09 to 39.71, or 18%. ION Geophysical Corporation (IO) advanced 1.07 to 7.37, or 17%, on 1.6 million shares. Multimedia Games Inc. (MGAM) 1.95 to 13.71, or 17%, on 1 million shares.

In addition, Zillow, Inc. (Z) was up 4.30 to 40.40, or 12%, on 2.7 million shares. Atlas Air Worldwide Holdings Inc. (AAWW) gained 5.26 to 52.26, or 11%, on 1.1 million shares.

Direxion Daily Gold Miners Bear 3X Shrs (DUST) jumped 5.81 to 57.01.

Concur Technologies, Inc. (CNQR) ran 5.89 to 63.87, Liquidity Services, Inc. (LQDT) 7.31 to 62.24, Scripps Networks Interactive, Inc. (SNI) 3.79 to 54.53, Teradata Corporation (TDC) 4.95 to 77.14, OM Group Inc. (OMG) 1.29 to 25.03, Volcano Corporation (VOLC) 1.39 to 29.44, and Papa John's International Inc. (PZZA) 2.02 to 49.38 rounded out the gainers on our board today.

Stepping back and reviewing the hourly chart patterns, the indices stair-stepped their way lower in a 5-wave decline all session until the last hour, when they snapped back. However, they could not get through key resistance that was broken earlier, and they rolled back into the close.

It was a very negative day, indeed, for Wall Street. Let’s see how it goes tomorrow.

Good Trading!


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