Closing Analysis

Lousy Day with Late Snapback

Closing Technical Market Analysis for Tue July 10th 2012

The stock market indices had a lousy day today, but they did have a late snapback to pare back the losses.

The day started out with a big up move today. As well, that tagged right on resistance at 2630 Nasdaq 100 and 1362 S&P 500, but it failed right there quickly and sold off sharply in the morning. By midday, it stabilized to form little bear wedges. They rolled over early afternoon, and sold off sharply into the last 15 minutes before they snapped back.

Net of the day, the Dow was down 83.17 at 12,653.12, about 47 points off its low, the S&P 500 was down 10.99 at 1341.47, about 5 points off its low, and the Nasdaq 100 down 24.79 at 2585.52, 11 points off the low.

Advance-declines were nearly 2 to 1 negative on New York, and 2 to 1 negative on Nasdaq as well. Up/down volume was nearly 5 to 1 negative on New York, with total volume of 720 million shares. Nasdaq traded 1.66 billion, and had a 5 to 1 negative volume ratio. board was mostly lower, except for the ultra-shorts, but there were a few gainers today. Leading the way was low-priced BioMimetic Therapeutics Inc. (BMTI), which was up 66 cents to 3.46, or 23 1/2%, on 1.7 million shares. AerCap Holdings N.V. (AER) was up 1.33 to 13.48, or 12%, on 1.6 million shares. Synageva BioPharma Corp. (GEVA) jumped 4.16 to 45.36, or 10%, on 720,000 shares.

Other gainers of note included magicJack VocalTec Ltd. (CALL), up 1.73 to 20.44, but substantially off the high, A. Schulman, Inc. (SHLM) up 1.76 to 21.99, ASML Holding NV (ASML) up 4.11 to 52.57. Cymer Inc. (CYMI) up 4.47 to 61.17, Wolverine World Wide Inc. (WWW) up 2.64 to 40.97, Susser Holdings Corporation (SUSS) up 1.28 to 38.80, Harley-Davidson, Inc. (HOG) up 1.40 to 47.09, and Integra LifeSciences (IART) up 1.85 to 38.61.

ProShares Ultra-Short Silver (ZSL) snapped back 2.39 to 70.44, which rounded out the point-plus gainers for today.

On the downside, a lot of the large-cap Nasdaq 100 stocks got hit hard today. Google Inc. (GOOG) was down 4.31 to 581.70, Apple Inc. (AAPL) down 5.68 to 608.21, International Business Machines Corp. (IBM) 3.41 to 186.26, and Inc. (AMZN) 5.55 to 219.50.

In addition, SodaStream International Ltd. (SODA) lost 3.26 to 38.21, and Netflix, Inc. (NFLX) dropped 2.76 to 80.23.

The Direxion Daily Financial Bull 3X Shares (FAS) was down 2.11 to 84.97, and the Direxion Daily Small Cap Bull 3X Shares (TNA) gave back 1.89 to 53.33.

Stepping back and reviewing the hourly chart patterns, the indices gapped up sharply at the opening, but then failed quickly, rolled over, and fail down into a 3-wave decline intraday in a definitive down channel only bouncing off the bottom of those channels to prevent them from closing at the lows for the day. They did bounce of key support on the hourly charts.

We’ll see what that means tomorrow.

Good Trading!


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