Closing Analysis

Indices Explode Because Tariffs May Be Delayed

Closing Technical Market Analysis for Thu June 6th 2019

Markets opened with big gaps up Thursday to 2832.29 S&P 500 and 7240.35 Nasdaq 100, but immediately reversed, came down, bounced in sharp vertical wedges, rolled over and moved up 5 waves down, but when they failed to reach support, they rally back up, formed a double top, and came back down. They climbed back up in sharp wedges, the Nasdaq 100 reaching support at a new mid-morning high at 7260.14. The S&P 500 did not confirm, and on news that Mexico is not offering enough to avert tariffs, both the S&P 500 and Nasdaq 100 took a slide down to 2827.30 S&P 500 and 7224.73 Nasdaq 100. Just before the noon hour, they formed micro-bear flags, which got deeper when they retested the lows, and then formed a bull coil.

Mid-afternoon, they were at the apex of intraday wedges, rolled over, moved up in vertical wedges. They rolled over and then rallied straight up, made a slight horizontal move right on support, popped through support to a mid-afternoon high of 2841.51 S&P 500 and 7262.28 Nasdaq 100. In the last forty minutes, the indices made a big move on news that the Mexico tariffs may be delayed and ran up to late afternoon highs at 2822.45 S&P 500 and 7293.22 Nasdaq 100. They came down, rallied, formed a wedge, and in the last five minutes, came down again, and closed off the session high’s but, still, it was a very positive session.

Net on the day, the Dow was up 181.09 at 25,720.66. The S&P 500 was up 17.34 at 2843.49. The Nasdaq 100 was up 55.02 at 7275.93.

Advance-declines were nearly flat on the New York Stock Exchange, and less than 3 to 2 negative on the Nasdaq. Up/down volume was a little more than 3 to 2 positive on New York, total volume 3 billion shares traded. The Nasdaq traded 1.9 billion shares and had more than 3 to 2 negative volume ratio.

TheTechTrader.com board were mixed on Thursday, but another day with a lot of winners on our board. To the upside, gainers included Amazon.com, Inc. (AMZN) up 15.86 to 1754.36, Alphabet Inc. (GOOG) up 2.12 to 1044.34, Apple Inc. (AAPL) 2.68 to 185.22, Facebook, Inc. (FB) closed flat, and Netflix, Inc. (NFLX) 1.40 to 357.13.

Tesla, Inc. (TSLA) jumped 9.36 to 205.95, NVIDIA Corporation (NVDA) ran 2.50 to 143.78, and Microsoft Corporation (MSFT) gained 1.99 to 127.83.

Other stocks to the upside included Advanced Micro Devices, Inc. (AMD) up 2.32 to 31.82, Science Applications International Corporation (SAIC) up 5.67 to 84.95, DocuSign, Inc. (DOCU) 1.42 to 54.74, Alteryx, Inc. (AYX) 4.55 to 91.22, Starbucks Corporation (SBUX) 1.44 to 81.40, ABM Industries Incorporated (ABM) 2.50 to 39.78, and Anaplan, Inc. (PLAN) 2.75 to 47.35.

To the downside, point-plus losers included Beyond Meat, Inc. (BYND) was down 3.10 to 99.50, Lyft, Inc. (LYFT) down 1.38 to 61.63, Kansas City Southern (KSU) 1.95 to 117.34, DMC Global Inc. (BOOM) 5.32 to 70.44, uniQure N.V. (QURE) 2.20 to 72.00, and Soliton, Inc. (SOLY) 1.26 to 16.12.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) was down 2.09 to 40.80.

Checking TheTechTrader.com percent-gain leaderboard, Just Energy Group Inc. (JE) popped 46 cents, or 13%, to 3.98, on 2.1 million shares. Orion Energy Systems, Inc (OESX) advanced 47 cents, or 19%, to 3.00, on 2.1 million shares.

La Jolla Pharmaceutical Company (LJPC) exploded 4.92, or 93%, to 10.24, on 24 million shares. Barnes & Noble, Inc. (BKS) moved up 1.37, or 30%, to 5.96, 12 million shares. ContraVir Pharmaceuticals, Inc. (CTRV) eked out 2.08, or 42%, to 7.08, 7.8 million shares.

Ciena Corporation (CIEN) closed up 9.61, or 27%, to 45.49, on 2.5 million shares. Stitch Fix, Inc. (SFIX) ran 3.47, or 15%, to 27.04, on 2.3 million shares. Smartsheet Inc. (SMAR) climbed 4.17, or 10%, to 44.93, on 4.7 million shares. Comtech Telecommunications Corp. (CMTL) bounced 3.81 to 26.54.

Among other gainers, Workday, Inc. (WDAY) was up 4.51 to 204.11, Twilio Inc. (TWLO) up 2.86 to 139.63, and Okta, Inc. (OKTA) 4.08 to 123.57.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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