Closing Analysis

Very Nasty Start to the Week

Closing Technical Market Analysis for Tue January 22nd 2019

The stock market indices suffered large losses on Tuesday following the three-day holiday. The day started out gapping down, and then they continued downward, stair-stepping all day, forming bear flags and wedges. With about 40 minutes to go, they bounced, pulled back and bounced again right into the close, pulling back on some of the deepest levels, but, still, it was a very nasty day.

Net on the day, the Dow was down 301.87 at 24,404.48, about 160 points off the low. The S&P 500 was down 37.81 at 2632.90, 15 points off its low. The Nasdaq 100 was down 137.79 at 6646.81, 43 points off its low.

The technicals, however, did not catch up and were decidedly lower. Advance-declines were 3 1/2-4 to 1 negative on the New York Stock Exchange, and 3 to 1 negative on the Nasdaq. Up/down volume was 5 to 1 negative on New York, total volume 3.85 billion shares traded. The Nasdaq traded 2.4 billion shares and had a 3 1/2 to 1 negative volume ratio.

TheTechTrader.com board was mostly lower on Tuesday. Amazon.com, Inc. (AMZN) was down 64.03 to 1632.17, Alphabet Inc. (GOOG) down 27.74 to 1070.52, Apple Inc. (AAPL) 3.52 to 153.30, Facebook, Inc. (FB) 2.47 to 147.57, and Netflix, Inc. (NFLX) 13.94 to 325.16.

Tesla, Inc. (TSLA) dropped 3.34 to 298.92, NVIDIA Corporation (NVDA) lost 8.16 to 148.77, Intuitive Surgical, Inc. (ISRG) gave back 5.77 to 536.78, and Microsoft Corporation (MSFT) slid 2.03 to 105.68.

Baidu, Inc. (BIDU) fell 10.97 to 160.39 and First Solar, Inc. (FSLR) caved 1.73 to 46.21.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) was down 4.61 to 45.26, and Nutanix, Inc. (NTNX) down 1.43 to 50.73.

Other stocks to the downside included Square, Inc. (SQ) down 4.39 to 67.85, Etsy, Inc. (ETSY) down 2.29 to 53.54, Teladoc, Inc. (TDOC) down 1.92 to 60.47, DocuSign, Inc. (DOCU) 1.15 to 45.85, Twitter, Inc. (TWTR) 1.01 to 32.26, Tilray, Inc. (TLRY) 4.40 to 72.80, The Gap, Inc. (GPS) 1.07 to 24.94, CRISPR Therapeutics AG (CRSP) 4.05 to 33.08, California Resources Corporation (CRC) 1.90 to 20.04, and Attunity Ltd. (ATTU) 3.63 to 21.06.

In addition, Stanley Black & Decker, Inc. (SWK) was down 21.19 to 115.69, Targa Resources Corp. (TRGP) down 1.24 to 42.26, International Business Machines Corporation (IBM) 1.30 to 122.52, Alibaba Group Holding Limited (BABA) 4.87 to 152.15, and GrubHub Inc. (GRUB) 6.41 to 74.56.

To the upside, the only point-plus gainer on out board on  Tuesday was TAL Education Group (TAL) up 1.01 to 31.20.

Checking TheTechTrader.com percent-gain leaderboard, Boxlight Corporation (BOXL) popped 65 cents, or 37%, to 2.40, on 3.5 million shares. Titan Medical Inc. (TMDI) bounced 47 cents, or 14%, to 3.77. MiMedx Group, Inc. (MDXG) gained 22 cents, or 9%, to 2.71, on 2.3 million shares. ToughBuilt Industries, Inc. (TBLT) ran 23 cents, or 8%, to 3.17, on lower than usual volume. MediWound Ltd. (MDWD) peaked at 6.09 midmorning, and immediately began to stair-step down the rest of the down, closing down 51 cents, or 12%, to 4.89, on 12 million shares, just one penny of the lows for the day. PG&E Corporation (PCG), after securing 5.5B in Credit, stair-stepped up 47 cents, or 6 1/2%, to 7.70, on 59 million shares.

The VelocityShares Daily 2x VIX ST ETN (TVIX) was up 7.80, or 18%, to 51.52, on 18.2 million shares. The ProShares Ultra VIX Short-Term Futures (UVXY) up 7.65, or 13%, to 64.50, on 9.2 million shares.

The VelocityShares 3x Inv Natural Gas ETN (DGAZ) closed up 11.90, or 17%, to 81.76, on 3.9 million shares.

Among other gainers, Ryanair Holdings (RYAAY) was up 3.34 to 69.09, New Oriental Education & Technology Group Inc. (EDU) up 5.13 to 71.03, and eBay Inc. (EBAY) 1.90 to 32.90.

Stepping back and reviewing the hourly chart patterns, on Tuesday the indices gapped down, stair-stepped their way lower with consolidation patterns all day, until the last forty-five minutes when there were a couple of spike-ups, perhaps some short-coverings.

We’ll have to see what happens tomorrow.

Good Trading! 

Harry  


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