Closing Analysis

Down, Consolidation and Then Sharp Snap-back

Closing Technical Market Analysis for Tue May 22nd 2012

It was turn-around Tuesday in the afternoon on negative news out of Greece. The stock market indices were doing very well in the morning as a follow-through to yesterday’s rally. They got up to key overhead resistance at 2560 on the Nasdaq 100 and the 1328.30 zone on the S&P 500. That caused the indices to back off. They backed and filled in the afternoon, and were consolidating nicely until the Greek news. From there, they rolled over hard, but in the last 10 minutes, they bounced back sharply to keep the S&P 500 slightly in the positive, and the Dow nearly flat.

Net of the day, the Dow was down only 1.67 at 12,502.81, recapturing 12,500, after dipping 55 points below that. The S&P 500 was down 64 cents at 1316.63, 6 points off the low and 12 points off the high. The Nasdaq 100 was down 6.23 at 2539.20, although it did come back 15 points off the low and 23 points off its high.

Advance-declines managed to get back in the positive column by 100 issues on New York, but was negative by about 700 issues on Nasdaq. Up/down volume was a 43 to 40 negative plurality on New York, Nasdaq traded 1.8 billion, and the down volume exceeded the up volume by 10 to 7. board was very mixed at the close. The leading stocks on the downside included Google Inc. (GOOG) down 13.31 to 600.80, Apple Inc. (AAPL) down 4.31 to 556.97, and Facebook, Inc. (FB) dropped to 31.00 even, down 3.03. Inc. (AMZN) gave back 2.78 to 215.33, and Netflix, Inc. (NFLX) got whacked for 4.03 to 67.71.

Stocks on the upside included low-priced Genetic Technologies Ltd. (GENE), down 1.58 to 3.99, or 65%, on 1.5 million shares. Cleantech Solutions International, Inc. (CLNT) was up 99 cents to 3.42, or 41%, on 1.3 million shares. SmartHeat Inc. (HEAT) advanced 63 cents to 4.35, or 17%. Amyris, Inc. (AMRS) gained 30 cents to 2.13, or 16%, on 1 million shares. Millennial Media Inc. (MM) was up 1.26 to 14.65, or 10%.

Other stocks of note included Patrick Industries Inc. (PATK), one of our swing trades, jumped 1.27 to 13.07, or 11%. DSW Inc. (DSW) accelerated 5.43 to 61.23, or 10%, on 2 million shares.

In addition, Nordson Corporation (NDSN) advanced 4.28 to 53.28, and Tesla Motors, Inc. (TSLA), which we traded today, was up 2.02 to 30.79. Synacor, Inc. (SYNC) popped 74 cents to 10.24. Firsthand Technology Value Fund (SVVC) gained 90 cents to 19.59. Stratasys Inc. (SSYS) jumped 2.62 to 51.52.

Auxilium Pharmaceuticals Inc. (AUXL) gained 1.04 to 18.98. Pharmacyclics Inc. (PCYC), one of our swing trades, ran up 1.41 to 32.69. Pilgrim's Corp. (PPC) advanced 44 cents to 7.88. Vertex Pharmaceuticals Incorporated (VRTX) snapped back 99 cents to 63.09. American Vanguard Corp. (AVD) snapped back 1.00 to 26.13.

LinkedIn Corporation (LNKD) was up 4.49 to 101.33.

Those are some of the highlights for today on the long side.

Stepping back and reviewing the hourly chart patterns, the indices were up early, came down, consolidated, and coiled all afternoon, until the last hour when they rolled over on negative news out of Greece, only to snapback sharply in the last 10 minutes on bargain hunting and short covering.

Let’s see how it goes tomorrow.

Good Trading!


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