Closing Analysis

Stocks Pulled Back Sharply Just Before FOMC Meeting

Closing Technical Market Analysis for Wed July 31st 2019

The stock market opened higher on Wednesday morning as investors anticipated a rate cut announcement by Fed Powell at the FOMC meeting. By midmorning they came down, rallied, and then consolidated and coiled laterally intraday until just before the FOMC meeting when they made a sharp pullback retest, and then rallied back up just as sharply. They consolidated, and then made a massive drop as they stair-stepped down to early July lows on both indices. In the last 30 minutes, they formed wedges as they moved back up, and backed off into the close to close down on the day.

Net on the day, the Dow was down 333.75, reaching under 27,000 at 26,864.27. The S&P 500 was 32.90 at 2980.38. The Nasdaq 100 was down 103.69 to 7848.78.

Advance-declines were 2 to 1 negative on the New York Stock Exchange and 2 to 1 negative on the Nasdaq. Up/down volume was 6 to 1 positive of New York, total volume 4.4 billion shares traded. The Nasdaq traded 2.5 billion and had a 2 to 1 positive volume ratio. board was mixed. To the upside, point-plus gainers included Apple Inc. (AAPL) up 4.18 to 212.96, Twitter, Inc. (TWTR) up 1.33 to 42.33, Electronic Arts Inc. (EA) 3.93 to 92.50, Garmin Ltd. (GRMN) 2.00 to 78.60, Glaukos Corporation (GKOS) 2.81 to 81.69, Nordstrom, Inc. (JWN) 2.41 to 33.10, and Viper Energy Partners (VNOM) 2.01 to 32.26.

To the downside, point-plus losers included, Inc. (AMZN) down 31.75 to 1766.78, Alphabet Inc. (GOOG) down 7.92 to 1217.22, Facebook, Inc. (FB) 2.81 to 194.23, and Netflix, Inc. (NFLX) 3.01 to 322.92. Intuitive Surgical, Inc. (ISRG) lost 12.46 to 519.18, NVIDIA Corporation (NVDA) dropped NVIDIA Corporation (NVDA) 6.71 to 168.74, Baidu, Inc. (BIDU) gave back 1.04 to 111.71 and First Solar, Inc. (FSLR) fell 1.54 to 64.50.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) gave back 1.63 to 46.11.

Checking percent-gain leaderboard, R.R. Donnelley & Sons Company (RRD) gained 21 cents, or 12%, to 2.02, o 2.8 million shares. Workhorse Group Inc. (WKHS) popped 67 cents, or 15%, to 5.19, on 14 million shares. Extreme Networks, Inc. (EXTR) ran 78 cents, or 11%, to 8.14, to 3,85 million shares.

Lattice Semiconductor Corporation (LSCC) jumped 2.93, or 18%, to 19.34, on 12 million shares. NuVasive, Inc. (NUVA) bounced 6.58, or 11%, to 66.60, on 1.65 million shares. Enphase Energy, Inc. (ENPH) moved up 6.50, or 30%, to 28.15, on 22 million shares. Mercury Systems, Inc. (MRCY) climbed 10.09, or 14%, to 81.52, on 1.3 million shares.

Among other gainers, Paycom Software, Inc. (PAYC) was up 12.13 to 240.75, Moody's Corporation (MCO) up 12.10 to 214.34, Cincinnati Financial Corporation (CINF) 1.46 to 107.33, and Beyond Meat, Inc. (BYND) 1.75 to 196.51.

Let’s see what happens tomorrow.

Good Trading! 


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