Closing Analysis

Technicals Confirm Definitive Down Session RSS

Closing Technical Market Analysis for Wed March 28th 2012

The stock market indices had a definitive down day today as the price and technicals confirmed. The day started out with a little pop to the upside, particularly on the Nasdaq 100. They got right up to the highs for yesterday and a nominal new high for the year, reversed rather sharply, and in the morning dropped from 2794 to 2760, before bouncing. The S&P 500 dropped from 1414 down to 1398, before bouncing. In the afternoon, they made lower lows on the NDX, and slightly so on the SPX, but in the last 90 minutes they came back from an oversold intraday condition near support, rallying from 2755 to 2773 on the NDX. The S&P 500 rallied back from 1397 to 1406.

Net on the day, the Dow was down 71.52 at 13,126.14, about 57 points off its low, the S&P 500 down 6.98 to 1405.54, and the Nasdaq 100 down 11.15 at 2770.97.

Advance-declines were nearly 2 to 1 negative on the New York Stock Exchange and almost 2 to 1 negative on Nasdaq as well. Up/down volume was almost 3 to 1 negative on New York, with total volume of 761 million shares traded today. Nasdaq traded about 1.7 billion shares and had better than a 2 to 1 negative volume ratio. board definitely had a distinctively negative day today, although there were some gainers. Amylin Pharmaceuticals, Inc. (AMLN) ran 8.38 to 23.77, or 54 1/2%, on 43 million shares traded today. Low-priced Vermillion, Inc. (VRML) jumped 39 cents to 2.16, or 22%, on 5.4 million shares. Pentair, Inc. (PNR), on merger news with Tyco, surged 6.06 to 46.32, or 15%, on 8.2 million shares.

The VelocityShares Daily 2x VIX (TVIX) snapped all the way back to 8.34, but got hammered by the end of the day, down 23 cents to 7.20, on 33 million shares.

Shippers were very strong today. Teekay Tankers Ltd. (TNK) was up 75 cents to 6.01, or 14%, on 6.1 million shares. Frontline Ltd. (FRO) advanced 56 cents to 7.58, or 8%, on 6.8 million shares. Overseas Shipholding Group, Inc (OSG) gained 87 cents to 12.67, or 7%, on 1.25 million shares. Tsakos Energy Navigation (TNP) was up 68 cents to 8.65, or 8 1/2%, on nearly 500,000 shares.

Glu Mobile Inc. (GLUU) climbed over 5.00, getting as high as 5.18 before closing at 4.99, up 52 cents, or 11.5%, on 11 million shares. That swing trade of ours worked to perfection.

In addition, Robbins & Myers, Inc. (RBN) gained 4.98 to 50.81, KiOR, Inc. (KIOR) 1.05 to 13.51, Zoltek Companies Inc. (ZOLT) up 1.01 to 11.20, Towerstream Corporation (TWER) 39 cents to 4.34, Huntington Ingalls Industries (HII) 2.56 to 40.46, BroadVision, Inc. (BVSN) 1.96 to 29.66, Alkermes, Inc. (ALKS) 93 cents to 17.91, and Demandware, Inc. (DWRE) 3.61 to 31.45.

Apple Inc. (AAPL), which got up to 621.45, a new all-time high, dropped down to 610 before snapping back to close at 617.62, up 3.14 on the day. That helped the rally, for sure.

On the downside, Affymax, Inc. (AFFY) lost another 1.16 to 13.15. Netflix, Inc. (NFLX) was down 1.86 to 118.81. Nu Skin Enterprises Inc. (NUS) dropped 1.30 to 59.46, Universal Display Corp. (PANL) 1.03 to 35.58, SodaStream International Ltd. (SODA) 1.91 to 32.20, and Solarwinds, Inc. (SWI) 1.68 to 38.58.

Ultra-long Direxion Daily Small Cap Bull 3X Shares (TNA) gave back 1.10 to 63.58.

Stepping back and reviewing the hourly chart patterns, the indices had a pretty nasty sell-off in the morning, bounced midday, made lower lows in the afternoon just before snapping back in a short-covering type rally in the last 90 minutes, taking back about half the losses on the NDX and about a third on the S&P 500.

We’ll have to see how it goes.

Good Trading!


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- Harry Boxer

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