Closing Analysis

Late Rollover Puts Blue Chips in the Red RSS

Closing Technical Market Analysis for Wed March 21st 2012

The stock market indices did well for most of the day, but then they rolled over in the last 30-40 minutes to close negative on the blue chips. The Nasdaq 100, which was up all day, also closed down along with Apple Inc. (AAPL) late in the day. Apple, which reached as high as 609.65, an all-time new high, closed down 3.46 to 602.50. That was part of that late rollover.

The day started out with a pop to the upside. The Nasdaq 100 made new highs at that point, the S&P 500 did not. They pulled back and tested sharply by late morning, and then rebounded sharply, with new highs on the NDX, and once again, not confirmed by the S&P 500. They pulled back in an orderly fashion, and went to new highs, reaching a new multi-year high at 2752 on the NDX, but closed at 1736 and change, with a light rollover. The S&P 500, which did reach 1407 and change, did not even get across the morning high, and rolled over sharply, closing down on the day.

Net on the day, the Dow was down 45.57 at 13,124.62, about 65 points off its high, and the S&P 500 down 2.63 to 1402.89, nearly 5 points off its high. The Nasdaq 100 was down 75 cents at 2736.88, about 15 points off its high.

There are negative divergences going on here, and perhaps it may be the beginning of something, but we can’t tell until we get a downside follow-through. We’ll be keeping close tabs on that tomorrow.

Advance-declines were pretty flat on both exchanges, as was advancing over declining volume, with Nasdaq slightly higher than New York. Total volume on New York was about 700 million shares traded today. Nasdaq traded about 1.5 billion shares. board was mixed, but there were quite a few gainers, and several that we traded today. Leading the way today was low-priced biotech Galena Biopharma, Inc. (GALE), up 82 cents to 2.77, or 42%, on 23.5 million shares. On Assignment, Inc. (ASGN) was up 3.64 to 17.32, or 26.6%, on 2.7 million shares. Low-priced Origin Agritech Limited (SEED), on a ruling out of China, gained 57 cents to 3.09, or 22.6%, on 5.3 million shares. Powerwave Technologies, Inc. (PWAV) jumped 41 cents to 2.27, or 22%, on 3.2 million shares. OMNOVA Solutions Inc. (OMN) was up 90 cents to 6.56, or 16%, on 1.1 million shares.

Other gainers of note included Synacor, Inc. (SYNC) up 96 cents to 7.05, Meritor, Inc. (MTOR) 94 cents to 8.40, and Ruby Tuesday, Inc. (RT) 82 cents to 8.80.

In addition, Green Mountain Coffee Roasters Inc. (GMCR) ran up 5.09 to 55.79 on a deal with Starbucks Corporation (SBUX). Watson Pharmaceuticals, Inc. Co (WPI) jumped 5.16 to 63.69. YPF Sociedad Anonima (YPF) gained 2.28 to 29.70. ZAGG Inc (ZAGG) jumped 68 cents to 10.66. LinkedIn (LNKD) was up 5.94 to 97.78, although it did trade as high as 101 today, after a Goldman Sachs ratings upgrade.

Pharmacyclics, Inc. (PCYC), one of our favorites of the year, was up 1.71 to 27.93. Clean Energy Fuels Corp. (CLNE) gained 1.34 to 23.92, trading as high as 24.75, after signing deal with Saddle Creek to develop natural gas fueling stations at Saddle Creek locations nationwide. Ubiquiti Networks, Inc. (UBNT) was up 1.69 to 28.73. InterXion Holding (INXN) jumped 95 cents to 16.74. Netflix, Inc. (NFLX) climbed 5.08 to 120.10.

On the downside, Apple Inc. (AAPL) lost 3.46 to 602.50. Ultra-long Direxion Daily Financial Bull 3X Shares (FAS) was down 1.26 to 109.41.

Those were the only point-plus losers on our board today.

We’ll see how it goes tomorrow. Despite the late sell-off, the market still held on, but closed with losses for the day.

Good Trading!


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