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Closing Technical Market Analysis for Fri October 21st 2011
The stock market indices had a bang-bang close today on options expiration day with a strong afternoon snapback rally.
The day started out with a gap to the upside and a strong run up to test resistance. They reached 2350 on the Nasdaq 100 and 1239 S&P 500 before rolling over pretty hard midday, nearly filling the gap on the NDX all the way back to 2315, a 35-point pullback. The S&P 500 dropped from 1239 down to 1226, but both key levels held, and then a snapback and spike up in the last 15 minutes, in particular, closed the indices near the highs on the S&P 500 and on the Dow.
Net on the day, the Dow was up 267.01 at 11,808.79, the S&P 500 up 22.86 at 1238.25, and the Nasdaq 100 up 29.64 at 2335.93. That was 14 points off the high, so the NDX didn’t fare as well as the others.
Advance-declines were 26 to 4 positive on the New York Stock Exchange, and 4 to 1 positive on Nasdaq. Up/down volume was 7 to 1 positive on New York, with total volume of 1.75 billion shares traded today. Nasdaq traded just under 2 billion shares and had a nearly 4 to 1 positive volume ratio.
It was a very strong day technically on the indices for sure.
TheTechTrader.com board was mostly higher. Leading the way, Netflix, Inc. (NFLX) was up 5.56 to 117.04, which helped the NDX today. International Business Machines Corp. (IBM) was up 4.38 to 181.63.
Other gainers of note included Seagate Technology PLC (STX), up 3.36 to 15.42, or 28%, and low-priced Clean Diesel Technologies Inc. (CDTI), up 69 cents to 3.50, or 25%.
Also, Novatel Wireless Inc. (NVTL) was up 55 cents to 3.86, or 17%, Premiere Global Services, Inc. (PGI) up 1.05 to 8.77, or 14%; Charming Shoppes Inc. (CHRS) 40 cents to 3.54, or 13%; Altera Corp. (ALTR) 4.02 to 37.05, or 12%; Central European Media Enterprises Ltd. (CETV) 1.14 to 11.07, or 11 1/2%; Select Comfort Corporation (SCSS) 2.15 to 21.57, or 11%; SanDisk Corp. (SNDK) 4.26 to 49.76, or 9.3%; and Chipotle Mexican Grill, Inc. (CMG) 25.58 to 333.49, or 8%, as a result of earnings.
In addition, Gentex Corp. (GNTX) rose 2.21 to 29.42, Oshkosh Corporation (OSK) 1.50 to 19.90, Mitek Systems Inc. (MITK) 83 cents to 11.90, near the session high, and OPNET Technologies Inc. (OPNT), a new swing trade of ours, 2.78 to 42.68. Universal Display Corp. (PANL) added 1.63 to 48.33, Questcor Pharmaceuticals, Inc. (QCOR) 1.73 to 34.31, Silicon Motion Technology Corp. (SIMO) 86 cents to 16.00, and SodaStream International Ltd. (SODA) 1.42 to 33.67.
Some of the home builders were strong today. Lennar Corp. (LEN) was up 64 cents to 16.73, Toll Brothers Inc. (TOL) 98 cents to 18.09, and KB Home (KBH) 33 cents to 7.53.
The Direxion Daily Small Cap Bull 3X Shares (TNA) was up 2.67 to 42.85.
On the downside, VelocityShares Daily 2x VIX ST ETN (TVIX) lost 7.00 to 56.65, the Direxion Daily Financial Bear 3X Shares (FAZ) 3.47 to 45.25, the Direxion Daily Small Cap Bear 3X Shares (TZA) 2.51 to 35.81, and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) 2.53 to 43.79.
Stepping back and reviewing the hourly chart patterns, the indices had strong gaps up, a strong early rally, and then a big snapback retracement, which held key support. When that occurred they rallied back in a 5-wave advance into the close.
That was a strong end to the week. Let’s see how it goes next week.
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