Closing Analysis

Very Nasty Day for the NDX

Closing Technical Market Analysis for Tue October 9th 2012

The stock market indices had a very nasty session today.

The day started out with gap down followed by backing and filling on the S&P 500, but the NDX just kept falling as Apple, Google, Amazon, etc., all got hit harder early. The tumbling dissipated just before noon, and throughout the next few hours they formed bear wedges and coils. They rolled over in the afternoon with the Nasdaq 100 taking out the lows slightly, and the Dow and S&P 500 closing near the session lows. The NDX held above the lows, but not by much, and closed down sharply as well.

Net on the day, the Dow was down 110.12, under 13,500 at 13,473.53. The S&P 500 was down 14.40 at 1441.48. The Nasdaq 100 was down 45.00 at 2741.92.

Advance-declines were more than 3 to 1 negative on New York Stock Exchange, and nearly 4 to 1 negative on Nasdaq. Up/down volume was 3 to 1 negative on New York, with total volume of 600 million shares. Nasdaq traded over 1.66 billion, and had a 7 to 1 negative volume ratio. board, as a result, was mixed. As mentioned above, the large-cap stocks had a bad day. Apple Inc. (AAPL) was down 2.32 to 635.85. Google Inc. (GOOG) lost 13.75 to 744.09, 12 points off the low. Inc. (AMZN) gave back 8.10 to 250.96, and closed near the low for the day.

Netflix, Inc. (NFLX) lost 8.00 to 65.52, Onyx Pharmaceuticals, Inc. (ONXX) was down 2.67 to 87.03, and Pharmacyclics Inc. (PCYC) fell 2.43 to 64.77.

The Direxion Daily Financial Bull 3X Shares (FAS) lost 2.71 to 110.44, and the Direxion Daily Small Cap Bull 3X Shares (TNA) was down 2.21 to 59.60.

The point-plus gainers on our board today included Affymax, Inc. (AFFY), up 1.21 to 23.76.

The ProShares Ultra VIX Short-Term Futures ETF (UVXY) gained 2.36 to 30.82.

There were some high percent gainers today. BSD Medical Corp. (BSDM) exploded this morning, up 87 cents to 2.05, or 73.73%, on 4.1 million shares, a 9000% increase in volume. AspenBio Pharma, Inc. (APPY) gained 34 cents to 2.38, or 17%. E2open, Inc. (EOPN) jumped 2.07 to 15.21, or 15 3/4%. Spectrum Brands Holdings, Inc. (SPB) gained 4.88 to 46.04, or 12%, on 1.7 million shares.

Other gainers of note on our board today included Gulfport Energy Corp. (GPOR) up 2.22 to 32.65, Newfield Exploration Co. (NFX) 1.88 to 32.62, Peabody Energy Corp. (BTU) 1.29 to 23.93, and Westport Innovations Inc. (WPRT) 1.27 to 31.00.

The iPath S&P 500 VIX ST Futures ETN (VXX) jumped 1.46 to 35.98. ProShares Ultra Long DJ-UBS Natural Gas (BOIL) gained 2.10 to 55.71.

Stepping back and reviewing the hourly chart patterns, the indices came down very hard as the NDX dropped from 2785 down to nearly 2735, almost 50 points. They snapped back about 20 points, and then rolled over into the close to close down a nasty 45.00 today. The S&P 500 dropped from 1456 down to 1441, bounced, and then rolled over into the close, closing at the lows for the day.

It was a very bad day, with key support being pressed here after initial support was violated earlier in the day.

We are down pretty sharply after the last couple of sessions and are at key short-term support. Perhaps a little oversold. We could see it bounce tomorrow, but this could also accelerate lower and crack some key levels.

Good Trading!


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