Closing Analysis

NDX Pulls Market Down

Closing Technical Market Analysis for Wed October 31st 2012

The stock market indices put on a disappointing showing today, closing mixed on the session and had a very nasty sell-off in the morning.

The day started out mixed with the S&P 500 up and the Nasdaq 100 down. They sold off from 2666 to 2640 on the NDX, and went from 1418 1/2 down to 1406 on the S&P 500. Midday, the S&P 500 formed an inverse head-and-shoulders that broke out late in the day and went from 1412 up to 1414 and change, and then backed off.

Net on the day, the Dow closed down 10.67 at 13,096.54, about 40 points off the low and 90 points off the highs. The S&P 500 was up .22 at 1412.16, closing midrange. The Nasdaq 100 was down 17.91 at 2647.92, 8 points off the low, and closed with the worst index today as Apple led the way to the downside.

Advance-declines were 3 to 2 positive on the New York Stock Exchange, and 13 to 11 positive on Nasdaq. Total volume on New York was over 800 million shares. Nasdaq traded over 1 3/4 billion and had a 10 to 7 negative volume ratio. board was very unusual today as Apple Inc. (AAPL) was down 8.68 to 595.32, although that was 7 or 8 points off its low. Amazon Inc. (AMZN) lost 5.35 to 232.89, but Google Inc. (GOOG) was up 5.15 to 680.30.

Goldman Sachs (GS) was up 2.95 to 122.39, International Business Machines Corp. (IBM) up 1.26 to 194.53, and Netflix, Inc. (NFLX) 9.66 to 79.24, trading as high as 84.95.

Point-plus gainers on our board today included Great Plains Renewable Energy, which we traded today, up 1.70 to 7.73, or 28%, on 1 million shares. Hansen Medical, Inc. (HNSN) gained 46 cents to 2.27, or 25%, on 2.3 million shares. CommVault Systems, Inc. (CVLT) jumped 8.90 to 62.37, or 17%, on 2.8 million shares. UBS AG (UBS) advanced 1.83 to 15.02, or 14%, on 9.5 million shares.

Medidata Solutions, Inc. (MDSO) was up 4.49 to 42.00, Stewart Information Services Corporation (STC) up 2.69 to 23.36, Barnes & Noble, Inc. up 1.99 to 16.84, JDA Software Group Inc. (JDAS) 4.23 to 38.15, Nam Tai Electronics, Inc. (NTE) 1.18 to 11.84, and Nu Skin Enterprises Inc. (NUS) 5.39 to 47.33,

Cavium, Inc. (CAVM) was up 3.28 to 33.18, AZZ incorporated (AZZ) up 3.53 to 39.44, DigitalGlobe, Inc. (DGI) 2.47 to 25.94, Quanta Services, Inc. (PWR) 2.33 to 25.93, Verisk Analytics, Inc. (VRSK) 4.45 to 51.12, and Eagle Materials Inc. (EXP) 4.75 to 52.97.

General Motors Company (GM) had a big day, up 2.24 to 25.52, or nearly 10%, on 25 million shares, and Ford Motor Co. (F) gained 85 cents to 11.16, or 8%, on 138 million shares. Direxion Daily Gold Miners Bull 3X Shrs (NUGT) jumped 1.45 to 16.55, or nearly 10% today.

Stepping back and reviewing the hourly chart patterns, the indices were mixed at the opening and dropped steadily into the morning. Even though the S&P 500 made a new midday low, the NDX failed to do so and held the morning’s earlier-pullback low, forming a little bottom, and helping the rally back again.

The NDX was very unimpressive today as Apple and Amazon did not cooperate, and leaves us with a lot to be desired.

Good Trading!


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