Closing Analysis

Excellent Day With Strong Test of Support

Closing Technical Market Analysis for Tue June 12th 2012

Well, indeed, the stock market had a turn-around Tuesday. Despite a bounce in the morning, and a slight sell-off to retest the lows, making nominal new lows, the indices came on like wildfire, with the Nasdaq 100 going from 2511 to 2543 in an hour. The S&P 500 jumped from 1307 to 1321. They backed off in the afternoon to form wedges, popped out, and then retested, but then came on strong in the last half hour, closing near the highs for the day going away.

Net of the day, the Dow was up 162.57 at 12,573.80, just a couple points off its high, the S&P 500 was up 15.25 at 1324.18, pennies off the high, and the Nasdaq 100 up 29.02 at 2546.30, also just a few cents off the high.

Advance-declines were nearly 4 to 1 positive on New York, and 2 1/2 to 1 positive on Nasdaq. Up/down volume was more than 6 to 1 positive on New York, with total volume just under 700 million shares traded. Nasdaq traded more than 1.5 billion, and had a 4 to 1 positive volume ratio. board had a very strong day for many of the stocks, especially late in the session. Apple Inc. (AAPL) came on from 566.70 to and closed at 576.16, a ten-point reversal, up 4.99. International Business Machines Corp. (IBM) was up 2.04 to 194.55. Goldman Sachs (GS) took back 1.24 to 94.04.

However, Inc. (AMZN) was down 08 cents to 216.42, and Google Inc. (GOOG) gave back 3.40 to 565.10.

So it wasn’t a picnic on Nasdaq 100 today despite the results.

Among our leaders today, and we had quite a few of them, A123 Systems, Inc. (AONE), which we traded today, jumped 54 cents to 1.58, or 52%, on 34.4 million shares.

Solar stocks did very well today. First Solar, Inc. (FSLR), another one that we traded today, was up 2.62 to 14.95, or 21%, on 21.2 million shares. LDK Solar Co., Ltd. (LDK) gained 31 cents to 2.13, or 18%, on 2.9 million shares. LDK Solar Co., Ltd. (LDK) advanced 51 cents to 6.64, or 8%, on 2.2 million shares, among others in the solar group.

Other gainers of note included FSI International Inc. (FSII), up 38 cents to 3.60, or 12%. Arena Pharmaceuticals, Inc. (ARNA) gained 81 cents to 7.88, or 11%, on 37.4 million shares.

Junior biotechs did well today. Orexigen Therapeutics, Inc. (OREX) popped 41 cents to 3.67, or 13%, on 1.4 million shares. Osiris Therapeutics, Inc. (OSIR) gained 56 cents to 6.76, or 9%. Pacira Pharmaceuticals Inc. (PCRX) jumped 84 cents to 13.80. And Omeros Corporation (OMER) was up 85 cents to 13.05. These were notable among others in that group.

In addition, Gildan Activewear Inc. (GIL) jumped 2.27 to 27.15, TAM S.A. (TAM) gained 1.77 to 22.12, Questcor Pharmaceutical (QCOR) was up 3.29 to 48.56 United Rentals, Inc. (URI) advanced 2.12 to 32.30, and Ascena Retail Group Inc. (ASNA) ran up 1.22 to 19.63, were some of our highlights today.

Auxilium Pharmaceuticals Inc. (AUXL) gained 1.40 to 22.70, Bio-Reference Laboratories Inc. (BRLI) was up 1.30 to 23.01, and Seattle Genetics Inc. (SGEN) advanced 1.34 to 24.24.

Fusion-io, Inc. (FIO) jumped 98 cents to 18.59, and TripAdvisor Inc. (TRIP) which popped 2.08 to 45.02 were among some of the other standouts today.

The Direxion Daily Financial Bull 3X Shares (FAS) snapped back 3.12 to 79.12, as well as the Direxion Daily Small Cap Bull 3X Shares. (TNA), up 1.63 to 47.09.

Cheniere Energy, Inc. (LNG) was up 1.09 to 12.95, and Vertex Pharmaceuticals Incorporated (VRTX) popped 1.05 to 55.95.

Stepping back and reviewing the hourly chart patterns, the indices were down early, but they came back with a roar mid-morning, only to back off and consolidate until mid-afternoon when they came on again. From there they surged in the last half hour, closing near the highs for the day.

It was an excellent day, and a strong test of support, creating perhaps what could be a large head-and-shoulders bottoming pattern, but we’ll need to get up through the S&P 500, and past the highs for last week and this week around 1335, that’s now key resistance.

Let’s see how it goes tomorrow.

Good Trading!


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