Closing Analysis

Strong Rally Back

Closing Technical Market Analysis for Thu December 6th 2018

The stock market suffered very sharp losses early on Thursday, but then stabilized when the Nasdaq 100 tried to follow the S&P 500 to new lows just before lunch hour. Then they went into a 5-wave explosive rally that took the Nasdaq 100 all the way back into the plus column to close up on the day, while the Dow and S&P 500 closed way off the lows but still in the red.

Net on the day, the Dow was down 79.40 at 24,947.67, more than 725 points off the low. The S&P 500 was down 4.11 at 2695.95. The Nasdaq 100 was up 43.64 at 6838.85.

Advance-declines were 5, 10, even 15 to 1 negative at one point in the day, but closed at 18 to 11 on the New York Stock Exchange, and 18 to 12 negative on the Nasdaq. Up/down volume was less than 2 to 1 negative on New York, total volume 5 billion shares traded. The Nasdaq traded 2.8 billion shares and had a 16 to 11 positive volume ratio. board mixed., Inc. (AMZN) led the way up 30.79 to 1699.19, Alphabet Inc. (GOOG) up 17.91 to 1068.73, Facebook, Inc. (FB) 1.51 to 139.63, and Netflix, Inc. (NFLX) 7.55 to 282.88.

Tesla, Inc. (TSLA) jumped 3.36 to 263.06, and NVIDIA Corporation (NVDA) gained 1.18 to 158.29.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) was just up a fraction of 49 cents to 48.81, Nutanix, Inc. (NTNX) 1.80 to 44.43, and Amarin Corporation plc (AMRN) 1.04 to 17.99.

Other stocks to the upside included Square, Inc. (SQ) up 2.19 to 65.70, SolarEdge Technologies, Inc. (SEDG) up 1.84 to 40.38, and Universal Display Corporation (OLED) 6.54 to 98.29.

To the downside, Apple Inc. (AAPL) was down 1.97 to 174.72, Baidu, Inc. (BIDU) down 1.96 to 180.70, bluebird bio, Inc. (BLUE) 5.25 to 108.40, Teladoc, Inc. (TDOC) down 3.98 to 55.83, Exact Sciences Corporation (EXAS) 1.50 to 74.44, Canopy Growth Corporation (CGC) 1.11 to 30.34, Tilray, Inc. (TLRY) 1.26 to 99.00, and Lululemon Athletica Inc. (LULU) 2.18 to 131.44.

Checking percent-gain leaderboard, Safe-T Group Ltd (SFET) popped 99 cents, or 19 1/2%, to 6.05.   

Zscaler, Inc. (ZS) jumped 5.77, or 15 1/2%, to 42.98, on 5.6 million shares. Cloudera, Inc. (CLDR) bounced 1.47, or 13%, to 13.06, on 9.2 million shares. KLX Energy Services Holdings, Inc. (KLXE) climbed 5.56, or 28%, to 25.36. Okta, Inc. (OKTA) snapped back 6.30, or 10%, to 66.95, on 7.9 million shares.

Stepping back and reviewing the hourly chart patterns, the indices gapped down at the opening, and by 11:30, or so, at the session lows, they rallied back sharply, consolidated midafternoon, and then ripped into the close, finishing at the highs for the day going away.

Let’s see what happens tomorrow.

Good Trading! 


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