Closing Analysis

A Very Intriguing Session Today

Closing Technical Market Analysis for Thu May 24th 2012

The stock market indices had a very intriguing session today, and was down most of the session. But it rallied back in the last hour to close mixed on the session. The day started out with a move down, then they rallied to new highs on the S&P 500 to 1324, but the Nasdaq 100 did not take out yesterday’s late highs, while the indices did. That negative divergence caused a rollover, then they bounced, and formed bear flags. They went lower, stair-stepping their way down, but in the afternoon when the NDX made lower lows, the S&P 500 refused to follow through. That caused a late, sharp snapback surge, taking the NDX from 2512 to 2531, and the S&P 500 from 1310.50 up to 1320.50.

Net of the day, the Dow was up 33.60 at 12,529.75, about 110 points off the low, the S&P 500 was up 1.82 at 1320.68, 10 points off the low, but the Nasdaq 100 was down 15.73 at 2531.35, about 19 points off the low.

Advance-declines moved to 3 to 2 positive on New York, but were flat on Nasdaq. Up/down volume was 4 to 3 positive on New York, Nasdaq had a 10 to 6 negative volume ratio.

So Nasdaq 100 was much more negative today, and a lot of it had to do with the large-cap stocks. board was mostly mixed. On the downside, Apple Inc. (AAPL) was down 5.24 to 565.32, Google Inc. (GOOG) was down 5.80 to 603.66, Inc. (AMZN) lost 2.04 to 215.25, and Netflix, Inc. (NFLX) gave back 1.64 to 70.27. Goldman Sachs (GS) was down 1.18 to 96.86.

There were some outstanding winners today. Leading the way, were the junior biotech stocks. Rosetta Genomics, Ltd. (ROSG), which we gave as a day trade before the market opened, was one of them. It gapped up in the 13.25 range, exploded up to 16.50, backed off and consolidated for an hour. Then it went ballistic, running all the way up to over 23, where we exited the stock, before it fell back 8.00 to test 15 again only to snapback before the close, past 19. From there it rolled over into the close on profit-taking. Net-net, though, it was up 5.06 to 16.30, or 45%, on 8.7 million shares.

Genetic Technologies Ltd. (GENE) jumped 2.22 to 5.76, or 63%, 5.8 million shares. Vermillion, Inc. (VRML) was up 88 cents to 2.72, or 48%, on 4 million shares. Complete Genomics, Inc. (GNOM) gained 49 cents to 2.33, or 27%, on 8.2 million shares. Telik Inc. (TELK) was thinly traded, but still up 1.29 to 5.62, or 30%, on less than a half million shares. Compugen Ltd. (CGEN) advanced 51 cents to 4.05, or 14%.

In addition, low-priced Swisher Hygiene Inc. (SWSH) gained 37 cents to 2.10, or 21%, on 1 million shares. Vringo, Inc. (VRNG) was up 67 cents to 3.39, or 25%, on 1.5 million shares. AFC Enterprises Inc. (AFCE) was up 2.74 to 20.85, or 15%. Pandora Media, Inc. (P), on strong earnings, jumped 1.27 to 11.60, or 13%, on 15.6 million shares.

Other gainers of note, included BroadVision, Inc. (BVSN), on short covering, gained 1.10 to 13.66. As well, Amarin Corporation (AMRN) advanced 72 cents to 11.15. Sigma Designs, Inc. (SIGM) gained 36 cents to 5.79 on strong earnings.

Youku Inc. (YOKU) which was up 1.50 to 24.00 even, and PVH Corp. (PVH) which was up 5.01 to 82.38, were among the standouts today.

Also, Synopsys Inc. (SNPS) gained 1.65 to 29.85. Onyx Pharmaceuticals, Inc. (ONXX) was up 2.45 to 46.41.

Airlines did well today. US Airways Group, Inc. (LCC) was us 1.16 to 12.16, or 10.6%, on 17 million shares. United Continental Holdings, Inc. (UAL) jumped 1.22 to 23.53, and Delta Air Lines Inc. (DAL) gained 53 cents to 11.27.

Stepping back and reviewing the hourly chart patterns, the indices had a steady down-move with falling wedges that snapped out of them late in the session to recover a vast majority of the losses, and move into the positive column on the blue chips, Dow, and the S&P 500. The Nasdaq 100 failed to make that move because some of the major large-cap stocks that were mentioned were down today and it ended up in the loss column, but substantially off the lows.

So we’ll see if this is the bottoming process for a large consolidation for lower levels. That remains to be seen.

Good Trading!


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