Closing Analysis

It was a Flat Day

Closing Technical Market Analysis for Mon May 7th 2012

The stock market indices were mixed today after a very rough start, and futures were down sharply. They then bounced back sharply in a 5-wave advance only to pullback after making nominal, new, minor, breakout highs. They failed to go any further. The Nasdaq 100, however, did jump from 2621 all the way up to 2652 at one point. The S&P 500 went from 1364 up to 1374. In the afternoon, they stair-stepped their way lower, and backed off to close mixed on the session.

Net of the day, the Dow was down 29.74 at 13,008.53, the S&P 500 was up just 48 cents at 1369.58, about 6 points off the low, and the Nasdaq 100 up 1.36 at 2639.28, about 19 points off its low.

Advance-declines were about 250 issues higher on the New York Stock Exchange, and a very similar amount on Nasdaq. Up/down volume was narrow, but positive on New York, and narrow, but negative on Nasdaq, so net-net, it was a flat day. board was narrowly mixed, although there were a few exceptional gainers. Vertex Pharmaceuticals Incorporated (VRTX), on positive drug news, was up 20.71 to 58.12, or 55%, on 40 million shares.

Other gainers of note included Apple Inc. (AAPL), up 4.23 to 569.48, Goldman Sachs (GS) 1.05 to 110.04, and Questcor Pharmaceutical (QCOR) 1.11 to 43.06.

In addition, low-priced Insmed Incorporated (INSM) was up 1.40 to 4.10, or 52%, on 2.5 million shares. NN Inc. (NNBR) up 1.90 to 9.35, or 25 1/2%, Clearsign Combustion Corp. (CLIR) gained 1.95 to 9.39, or 26%, SGOCO Group, Ltd. (SGOC) 32 cents to 2.40, or 16%, and Synacor, Inc. (SYNC) 1.71 to 13.10, or 15%.

The GEO Group, Inc. (GEO) ran 1.61 to 22.14 on merger news. Conns Inc. (CONN) gained 1.08 to 17.50. United Continental Holdings, Inc. (UAL) advanced 1.31 to 23.59. Affymax, Inc. (AFFY) was up 71 cents to 13.29. Spreadtrum Communications Inc. (SPRD) jumped 88 cents to 16.34. EZchip Semiconductor Ltd. (EZCH) gained 1.97 to 39.86. Avis Budget Group, Inc. (CAR) was up another 70 cents to 16.60. Gaylord Entertainment Co. (GET) popped 1.15 to 34.92, and Cree, Inc. (CREE) was up 1.05 to 32.88 to round out the gainers for today.

The Direxion Daily Gold Miners Bear 3X Shrs (DUST) gained 1.35 to 57.90, and the Direxion Daily Financial Bull 3X Shares (FAS) was up 1.47 to 98.47.

On the downside, the point-plus losers included International Business Machines Corp. (IBM), down 1.24 to 203.75, SolarWinds, Inc. (SWI) 1.61 to 45.50, and Allot Communications Ltd. (ALLT) 1.71 to 23.70.

Stepping back and reviewing the hourly chart patterns, the indices gapped lower, and then stair-stepped their way higher in a 5-wave advancement. They pulled back in the last hour, or so, to pare back the rally, but closed mixed on the session. Still, it’s an unresolved pattern as the indices tested support most of the day, and bounced, but that’s about all they did today.

We’ll have to see whether there’s any upside or downside follow-through tomorrow.

Good Trading!


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