Closing Analysis

Market Plunges on FOMC Rate Hike Announcement

Closing Technical Market Analysis for Wed December 19th 2018

The stock market had a disastrous day on Wednesday after the FOMC announced another interest rate hike. Fed Chairman Jerome Powell’s comments were negative for Wall Street and the markets plunged. The day started out to the upside, but after the announcement it took the Nasdaq 100 from a high of 6575.39 to a plunge of nearly 290 points, to 6284.72. It did bounce at the end of the day, but formed wedges, and closed very bearish looking, with potential of lower levels to come. The S&P 500 got up to 2585.29 and dropped down to 2488.96, a 95-point drop in less than an hour.

Net on the day, the Dow was down 351.98 at 23,323.66. The S&P 500 was down 39.20 at 2506.96, 80 points off the high. The Nasdaq 100 was down 128.75 at 6995.00.

Advance-declines were 22 to 8 negative ratio on the New York Stock Exchange, and on the Nasdaq. Up/down volume was nearly 4 to 1 negative ratio on New York, total volume of 5 billion shares traded. The Nasdaq traded 2.8 billion shares and had a 4 1/2 to 1 negative volume ratio.

TheTechTrader.com board was mostly all red. Amazon.com, Inc. (AMZN) was down 56.40 to 1495.08, Alphabet Inc. (GOOG) down 5.70 to 1023.01, Apple Inc. (AAPL) down 5.18 to 160.89, Facebook, Inc. (FB) 10.42 to 133.24, Netflix, Inc. (NFLX) 4.17 to 266.77.

Tesla, Inc. (TSLA) lost 4.06 to 332.07, NVIDIA Corporation (NVDA) fell 8.43 to 138.51, and Intuitive Surgical, Inc. (ISRG) gave back 10.44 to 471.92. Baidu, Inc. (BIDU) dropped 5.13 to 162.48, and Intel Corporation (INTC) 2.17 to 45.57.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) was down 3.67 to 32.94, bluebird bio, Inc. (BLUE) down 2.30 to 101.13, Exact Sciences Corporation (EXAS) down 3.45 to 64.35, Nektar Therapeutics (NKTR) 1.48 to 34.25, and Clovis Oncology, Inc. (CLVS) 1.15 to 17.72.

Other stocks to the downside included The Boeing Company (BA) down 8.51 to 319.55, and Tilray, Inc. (TLRY) 5.50 to 71.00.

Point-plus gainers included Eli Lilly and Company (LLY) up 2.51 to 109.11, Jabil Inc. (JBL) up 1.54 to 23.75.

Checking TheTechTrader.com percent-gain leaderboard, Uxin Limited (UXIN) was up another 1.26, or 15%, to 9.55, on 11 million shares. Adial Pharmaceuticals, Inc. (ADIL) popped 69 cents, or 23%, to 3.64, on 10 million shares. Aduro BioTech, Inc. (ADRO) eked out 49 cents, or 20%, too 2.96, on 7.2 million shares.

Marin Software Incorporated (MRIN) bounced 2.93, or 79%, to 6.65, on 21 million shares.

ABM Industries Incorporated (ABM) stair-stepped 3.72, or 14%, to 30.78, on 3.1 million shares. Winnebago Industries, Inc. (WGO) snapped back 2.73, or 13 1/2%, to 22.67, on 6.5 million shares. PolarityTE, Inc. (PTE), on a medical announcement, gained 1.19, or 9%, to 14.64. Materialise NV (MTLS) spiked late to 1.49, or 8%, to 20.00.

As gold got hammered after the interest rate news, the Direxion Daily Jr Gld Mnrs Bear 3X ETF (JDST) ran 7.75, or 13%.

Stepping back and reviewing the hourly chart patterns, the indices were backing and filling in the morning, but right after the FOMC comments they had one little pop to the upside, and then they plunged sharply, backed and filled near the close. This was not a good outcome.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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