Closing Analysis

Blue Chips Rebound to Close Ahead in Mixed Session RSS

Closing Technical Market Analysis for Fri March 23rd 2012

The stock market indices were mixed at the close with Nasdaq down and the blue chips -- the Dow and S&P 500-- up. The day started out with a sharp drop at the opening. There were new lows for the last three sessions on the NDX, and for the entire week on the S&P 500, but they managed to snap back early on, worked their way higher all day, and pulled back in the last hour.

Net on the day, the Dow was up 34.59 at 13,080.73, and the S&P 500 up 4.33 to 1397.11, just 2 points off its high, but, the Nasdaq 100 was down 2.95 at 2728.55, about 14 points off its low.

Advance-declines were 2 1/2-3 to 1 positive, with 2122 up and 852 down, on the New York Stock Exchange, and 2 to 1 positive on Nasdaq. Up/down volume was 2 1/2 to 1 positive on New York, with total volume of 725 million shares traded today. Nasdaq traded about 1.4 billion shares and had a flat volume ratio. board was mostly higher, but just fractionally so. Leading the way, low-priced Dialogic, Inc. (DLGC) jumped 64 cents to 1.36, or 89%. TearLab Corporation (TEAR) gained 72 cents to 3.62, or 25%, on 1.3 million shares. Glu Mobile Inc. (GLUU), one of our swing trades, opened at 4.30, tagged 4.93, and closed up 85 cents to 4.85, or 21%, on an amazing 14.8 million shares. Cost Plus, Inc. (CPWM) reached as high as 18.98, and closed at 18.66, up 2.64, or 16 1/2%, on 2.22 million shares today. Medidata Solutions, Inc. (MDSO) ran up 2.61 to 27.51, or 10 1/2%.

In addition, Esterline Technologies Corporation (ESL) was up 6.93 to 75.20, Sandridge Energy Inc. (SD) up 66 cents to 8.29, InvenSense, Inc. (INVN) 1.14 to 21.41, Monster Worldwide, Inc. Common (MWW) 73 cents to 10.22 on take-over rumors, Affymax, Inc. (AFFY) 98 cents to 13.42, Ubiquiti Networks, Inc. (UBNT) 1.66 to 30.38, Boingo Wireless, Inc. (WIFI) 1.17 to 12.50, Guidewire Software, Inc. (GWRE) 1.34 to 32.89, Caribou Coffee Company, Inc. (CBOU) 99 cents to 17.31, and InterXion Holding (INXN) 1.14 to 18.10.

Other gainers of note included Goldman Sachs (GS), up 1.44 to 126.18, along with Netflix, Inc. (NFLX), up 1.46 to 120.19, and Rackspace Hosting, Inc (RAX), up 1.06 to 57.00.

Ultra-long Direxion Daily Financial Bull 3X Shares (FAS) was up 2.67 to 108.00, and the Direxion Daily Small Cap Bull 3X Shares (TNA) took back 1.80 to 62.29.

On the downside, Apple Inc. (AAPL) lost 3.29 to 596.05. In addition, the ultra-short VelocityShares Daily 2x VIX (TVIX) got crushed, down 3.04 to 7.16. The iPath S&P 500 VIX Short Term Futures (VXX) was down 1.28 to 17.30.

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

Stepping back and reviewing the hourly chart patterns, the indices came down sharply at the opening and hit new lows for the week on the S&P 500. They snapped back nicely, and the S&P 500 jumped from 1387 up to 1399, closing at 1397. It was a good comeback in the afternoon, but still, the overall pattern, at least for now, appears to be a downtrend in the last week’s trading for the S&P 500.

We’ll have to see if we get any downside follow-through next week.

Good Trading!


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