Closing Analysis

FOMC Took Them Up, Late Sell-Off Brought Them Down

Closing Technical Market Analysis for Wed May 1st 2019

Futures were sharply higher as the markets opened Wednesday morning, and ADP numbers came out better than expected, making for a very strong opening for the S&P 500, Nasdaq 100, and Dow. The day started out with big gaps up, they came down, bounced around, and just before the noon hour, the S&P 500 reached up to 2953.53, and the Nasdaq 100 to 7847.10. They then rolled over, the S&P 500 taking a slide, then formed sharp wedges before dropping to 2943.73. The Nasdaq 100 came down similarly, but in 5-waves, bounced, formed wedges, pulled back, and bounced again slightly, reaching down to 7820.07.

They slowly made their way back up, but by the start of the FOMC meeting, and news that the interest rates would stay the same, they made new rally, and all-time highs, the S&P 500 to 2954.13 and the Nasdaq 100 to 7851.03. Minutes after the meeting started, they pulled back, but as it came more apparent that the economy is robust and both households and businesses will benefit from it, they popped again. However, by the time the FOMC ended, indices came down in sharp down-bars, retested the lows, and took off, climbing 3-waves up, but a late selloff, post support break accelerated lower. Key intraday technical support was broken and down they went, closing at the lows for the day going away. The day had such a good start but turned ugly by the end of the day.

Net on the day, the Dow was down 162.77 at 26,430.14. The S&P 500 was down 22.10 at 2923.73. The Nasdaq 100 was down 29.61 at 7751.85.

New York Stock Exchange total volume was 3.4 billion shares traded, and the Nasdaq traded 2.2 billion shares.

TheTechTrader.com board was mixed but mostly lower on Wednesday. To the upside, point-plus gainers included Apple Inc. (AAPL) up 9.85 to 210.52, and Netflix, Inc. (NFLX) up 8.27 to 378.81.

Other stocks to the upside included Take-Two Interactive Software, Inc. (TTWO) up 2.22 to 99.05, CVS Health Corporation (CVS) up 2.95 to 57.33, Acacia Communications, Inc. (ACIA) 2.57 to 60.45, Johnson Controls International (JCI) 1.79 to 39.29, Mercury Systems, Inc. (MRCY) 1.14 to 74.16, and Timken Company (TKR) 3.84 to 51.79.

To the downside, point-plus losers included Amazon.com, Inc. (AMZN) down another 15.00 to 1911.52, Alphabet Inc. (GOOG) down 20.40 to 1168.08, Facebook, Inc. (FB) had a fractional loss of 37 cents to 193.03, Tesla, Inc. (TSLA) 4.68 to 234.01, and Intuitive Surgical, Inc. (ISRG) 13.58 to 497.05.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) dropped 2.76 to 45.86.

In addition, Tandem Diabetes Care, Inc. (TNDM) was down 1.77 to 59.64, Twilio Inc. (TWLO) down 8.57 to 128.57, II-VI Incorporated (IIVI) 2.57 to 37.27, Heron Therapeutics, Inc. (HRTX) 3.93 to 17.75 (18%), and Alnylam Pharmaceuticals, Inc. (ALNY) 6.31 to 83.03.

Checking TheTechTrader.com percent-gain leaderboard, Taitron Components Incorporated (TAIT) bounced 97 cents, or 20%, to 5.75. ReWalk Robotics Ltd. (RWLK) ran 42 cents, or 12%, to 3.87.

ARCA biopharma, Inc. (ABIO) exploded 5.08, or 99%, to 10.25, on 22 million shares. Precipio, Inc. (PRPO) climbed 2.35, or 39%, to 8.40, on 5.3 million shares. 

Enphase Energy, Inc. (ENPH) gained 2.94, or 29%, to 12.98, on 16 million shares. Veracyte, Inc. (VCYT) popped 2.30, or 10%, to 25.17. Nanometrics Incorporated (NANO) snapped back 6.50, or 22%, to 36.29. Pacira Pharmaceuticals, Inc. (PCRX) moved up 6.43, or 16%, to 46.25, on 3.3 million shares. Aerojet Rocketdyne Holdings, Inc. (AJRD) bounced 3.15, or 9%, to 37.02, on 3.1 million shares.

OSI Systems, Inc. (OSIS) thrust 12.07, or 13%, to 102.20. Rogers Corporation (ROG) made its way up 23.30, or 14%, to 190.82, on 1.1 million shares.

Among other gainers, Royal Caribbean Cruises Ltd. (RCL) was up 8.09 to 129.03, Alibaba Group Holding Limited (BABA) 3.74 to 189.31, and Inphi Corporation (IPHI) 2.15 to 47.81.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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