Closing Analysis

Wall Street Started 2019 on a Positive Note

Closing Technical Market Analysis for Wed January 2nd 2019

The stock market opened sharply lower on Wednesday after very weakened economic data out of China reminded investors that their crazy economy had a negative impact on global growth and corporate development as well. In the afternoon, they had a very strong rally, the Nasdaq 100 going from under 6220 all the way up to nearly 6400, 175 points, and the S&P 500 went from 2458 to 2520, 62 points. They then had a sharp pullback, testing the morning pullback lows. That held. Falling wedges and a late snapback put the market back into the plus column.

Net on the day, the Dow was up 18.78 at 23,346.24. The S&P 500 was up 3.18 at 2510.03, 43 points off the low and 9 off the high. The Nasdaq 100 was up 30.90 at 6360.87, 62 points off the low and 35 off the high.

Advance-declines were 21 to 9 positive on the New York Stock Exchange, and 21 1/2 to 9 positive on the Nasdaq. Up/down volume was 2 1/2 to 1 positive on New York, total volume 3 2/3 billion shares traded. The Nasdaq traded 2 1/4 billion shares and had a 3 to 1 volume ratio.

TheTechTrader.com board was mostly green on Wednesday. Amazon.com, Inc. (AMZN) was up 37.16 to 1539.13, Alphabet Inc. (GOOG) up 10.24 to 1045.85, Facebook, Inc. (FB) 135.68, and Netflix, Inc. (NFLX) closed flat. NVIDIA Corporation (NVDA) gained 2.72 to 136.22, and Baidu, Inc. (BIDU) popped 3.65 to 162.25. Square, Inc. (SQ) ran 1.11 to 57.20.

The Direxion Daily S&P Biotranech Bull 3X ETF (LABU) jumped 1.29 to 34.15, Nektar Therapeutics (NKTR) up 1.35 to 34.22, and Exact Sciences Corporation (EXAS) 1.04 to 64.14.

Marijuana had a good day. Canopy Growth Corporation (CGC) was up 2.05 to 28.92, and Cronos Group Inc. (CRON) up 92 cents to 11.31.

Stocks on the downside included Tesla, Inc. (TSLA) down 22.68 to 310.12, Intuitive Surgical, Inc. (ISRG) down 12.89 to 466.03, Teladoc, Inc. (TDOC) 1.39 to 48.18, and Tandem Diabetes Care, Inc. (TNDM) 3.97 to 34.00.

Checking TheTechTrader.com percent-gain leaderboard, Qutoutiao Inc. (QTT) stair-stepped 66 cents, or 10%, to 7.01, on 1.6 million shares. Marin Software Incorporated (MRIN) bounced 49 cents, or 9%, to 5.80, on 3.65 million shares. Prana Biotechnology Limited (PRAN) advanced 64 cents, or 50%, to 1.92, on 10 million shares.

Adial Pharmaceuticals, Inc. (ADIL) spiked 1.38, or 27%, to the session high at 6.50, on nearly a million shares. Energous Corporation (WATT) climbed 1.08, or 19%, to 6.87, on 4 million shares.

Cara Therapeutics, Inc. (CARA) ran to 14.92 before pulling back and closing up 1.56, or 12%, to 14.56, on 1.7 million shares. Bausch Health Companies Inc. (BHC) jumped 1.76, or 10%, to 20.23, on 7.5 million shares. ProQR Therapeutics N.V. (PRQR) snapped back 1.79, or 11%, to 17.48. NF Energy Saving Corporation (NFEC) bounced 1.73, or 11%, to 17.46. PolarityTE, Inc. (PTE) climbed 1.53, or 11%, to 15.02.

The Direxion Daily MSCI Brazil Bull 3X ETF (BRZU) was up 4.75, or 19%, to 29.72, on 3.75 million shares, and the iShares MSCI Brazil Capped ETF (EWZ) up 2.46 to 40.66.

Stepping back and reviewing the hourly chart patterns, the indices were down sharply at the opening on Wednesday, reversed and had a big rally fifty percent of the afternoon, pulled back, but managed to jump back into positive territory to close in the plus column.

Let’s see what happens tomorrow.

Good Trading! 

Harry  


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