Closing Analysis

Good Start to the Week Turns Red on Late Sell-Off

Closing Technical Market Analysis for Tue May 28th 2019

Markets opened higher on Tuesday as traders didn’t give much heed to Trump’s comments over the holiday weekend that the U.S. is far from a trade deal with China, but on late sell-off they took a nosedive into the red abyss.

The day started out as indices gapped up, exploded to early morning session highs at 2840.51 S&P 500 and 7362.29 Nasdaq 100, and then rolled over and came down in sharp wedges. They consolidated, rallied, but did not reach support, came down, and the S&P 500 tested session support lows near 2825. They bounced, coiled, came down again, the S&P 500 retesting support lows. Near mid-afternoon they consolidated, rolled over, the S&P 500 hit session lows, but the Nasdaq 100 did not confirm. Major indices continued to slide on the back of steady selling interest, now sitting at their lows for the session. With an hour to go, indices gave back earlier gains and then some as they continued to drop further into negative territory. By the end of the session, they bounced, rolled over, and closed at the session lows at 2808.00 S&P 500 and 7294.85 Nasdaq 100.

Net on the day, the Dow, after reaching early morning highs at 25,717.60, closed down 237.92 at 25,347.77. The S&P 500 was down 23.67 at 2802.39. The Nasdaq 100 was down 22.58 at 7278.38.

Advance-declines were 3 to 2 negative on the New York Stock Exchange, and almost 3 to 2 negative on the Nasdaq. Up/down volume was 3 to 2 positive on New York, total volume was a low 2.35 billion shares traded. The Nasdaq traded 1.5 billion shares and had a 3 to 1 negative volume ratio.

TheTechTrader.com board was positive until midafternoon on Tuesday, when it rolled over and closed to the downside. Still, many of the stocks we follow did well. Amazon.com, Inc. (AMZN) was up 13.15, Facebook, Inc. (FB) up 3.25 to 184.31, while Alphabet Inc. (GOOG) and Netflix, Inc. (NFLX) had fractional gains.

Other point-plus gainers included Square, Inc. (SQ) up 1.19 to 65.85, ShockWave Medical, Inc. (SWAV) up 1.70 to 60.00, SolarEdge Technologies, Inc. (SEDG) 1.77 to 55.38, Fate Therapeutics, Inc. (FATE) 1.28 to 20.25, Momo Inc. (MOMO) 1.29 to 26.31, REGENXBIO Inc. (RGNX) 3.28 to 48.92, Upland Software, Inc. (UPLD) 1.90 to 49.44, Canada Goose Holdings Inc. (GOOS) 1.10 to 48.99, Repligen Corporation (RGEN) 1.40 to 70.26, and Beyond Meat, Inc. (BYND) 6.33 to 86.00.

To the downside, point-plus losers included Tesla, Inc. (TSLA) down 1.93 to 188.70, NVIDIA Corporation (NVDA) down 1.82 to 143.33, Intuitive Surgical, Inc. (ISRG) 5.31 to 471.22, Roku, Inc. (ROKU) 6.95 to 88.83, Kirkland Lake Gold Ltd. (KL) 1.22 to 32.03, BioMarin Pharmaceutical Inc. (BMRN) 4.57 to 84.50, GrubHub Inc. (GRUB) 1.45 to 64.42, and Zynerba Pharmaceuticals, Inc. (ZYNE) 1.10 to 12.08.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) lost 1.33 to 42.28.

Checking TheTechTrader.com percent-gain leaderboard, Semiconductor Manufacturing International Corporation (SMI) gained 58 cents, or 11%, to 5.82, on 2.5 million shares. Eldorado Gold Corporation (EGO) popped 51 cents, or 16%, to 3.62, on 5.9 million shares. Valeritas Holdings, Inc. (VLRX) climbed 53 cents, or 23%, to 2.84. Biocept, Inc. (BIOC) advanced 14 cents, or 11%, to 1.38, on 24 million shares.

TransEnterix, Inc. (TRXC) bounced 14 cents, or 11%, to 1.40, on 8.6 million shares. Exela Technologies, Inc. (XELA) thrust 72 cents, or 43%, to 2.39, on 1.9 million shares. Armata Pharmaceuticals, Inc. (ARMP) ran 1.00, or 32%, to 4.15, on 1.8 million shares.

Soliton, Inc. (SOLY) exploded 8.49, or 148%, to 14.22, on 21.4 million shares, after receiving FDA approval on new medical device.

Advanced Micro Devices, Inc. (AMD) surged 2.59, or 10%, to 29.03, on 144 million shares after the company unveiled new chips as promised. Anaplan, Inc. (PLAN) moved up 6.76, or 18%, to 43.87, on 9.4 million shares. SeaWorld Entertainment, Inc. (SEAS) stair-stepped 4.52, or 17%, to 31.77, on 6.3 million shares.

Among other gainers, Shopify Inc. (SHOP) was up 6.58 to 282.43, Total System Services, Inc. (TSS) up 5.39 to 118.84, Splunk Inc. (SPLK) 2.89 to 122.19, and Workday, Inc. (WDAY) 2.15 to 212.87.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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