Closing Analysis

Reversal Day?

Closing Technical Market Analysis for Mon October 9th 2017

The stock markets started out with a bang and hit new all-time highs early today, came down and consolidated midday, and in the afternoon when they couldn't get a rally back going, they rolled over, forming bear flags. They then broke and came down pretty hard and only a late bounce prevented them from closing at the lows for the day.

Net on the day, the Dow was down 12.60 at 22,761.07, but reached a high of 22,803 today. The S&P 500 was down 4.60 at 2544.73, after reaching 2551.82. The Nasdaq 100 was down 6.04 at 6058.53, with a high of 6078.80.

That was a new all-time high for all three, and potentially, and important reversal day today. We’ll have to see if there is any downside follow-through.

Advance-declines were 16 to 12 1/2 negative on the New York Stock Exchange, 17 to 11 1/2 negative on the Nasdaq. Up/down volume was almost 3 to 2 negative on New York, total volume was a light 2.4 billion shares traded. The Nasdaq traded 1.45 billion shares and had a slightly negative plurality declining volume. board was very mixed. (PCLN) had a big day today, up 8.93 to 1926.93, Apple Inc. (AAPL) was up 54 cents to 155.84, and, Inc. (AMZN) gained 1.41 to 990.99. Alphabet Inc. (GOOG) lost 1.89 to 977.00 and Netflix, Inc. (NFLX) dropped 1.15 to 196.87.  Baidu, Inc. (BIDU) ran 4.53 to 252.22, Facebook, Inc. (FB) snapped back 27 cents to 172.50, but First Solar, Inc. (FSLR) gave back 1.30 to 46.91.   Tesla Motors, Inc. (TSLA) was a big loser today, down 13.94 to 342.94.

Other stocks to the downside included Spark Therapeutics, Inc. (ONCE), down 1.77 to 85.67, and Supernus Pharmaceuticals, Inc. (SUPN) 1.25 to 41.15.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) also lost 1.78 to 88.65.

Point-plus gainers included bluebird bio, Inc. (BLUE), up 3.75 to 131.50, NVIDIA Corporation (NVDA) up 4.09 to 185.39, and Universal Display Corp. (OLED), one of our swing trades, 2.20 to 130.30.

Checking percent-gain leaderboard, Social Reality, Inc. (SRAX) popped 89 cents, or 27%, to 3.28, on 2.8 million shares traded.   Bioptix, Inc. (BIOP), one of our day trades, climbed 1.34, or 18%, to 8.74, on 1 million shares traded. inTEST Corporation (INTT) advanced, 1.00, or 12%, to 9.50.  Helios and Matheson Analytics Inc. (HMNY) was another big winner today, jumping 5.34, or 34%, to 21.09, on 12.4 million shares traded. Veritone, Inc. (VERI) bounced 3.95, or 11%, to 40.98, on 1.2 million shares traded.   Among other gainers, MuleSoft, Inc. (MULE) was up 1.77 to 22.13.

Stepping back and reviewing the hourly chart patterns, the indices had an early pop to new all-time highs, came down midday, rolled over in the afternoon, and then accelerated in the last 23-30 minutes to take back a chunk of the losses.

It was not a good start to the week, and we’ll have to see if this is the beginning of something worse. So, let’s see what happens tomorrow.

Good Trading! 


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