A Snapback and 50% Retracement
Posted on September 27, 2012 at 17:44 PM EDT
The stock market indices snapped back today, recovering about a 50% retracement of the previous 2-day sell-off. The day started out with some backing and filling action, and then they broke out midmorning, ran sharply to resistance, and stalled there. The Nasdaq 100 broke out slightly, getting up to 2827, and the S&P 500 stalled at 1450. Both indices backed off, and backed and filled into the close. The NDX held better than the S&P 500, which backed off into the close. Net on the day, the Dow was up 72.46 at 13,485.97, 37 points off the high. The S&P 500 was up 13.83 at 1447.15, 3 points off its high. The Nasdaq 100 was up 39.97 at 2821.60, 6 points off its high. Advance-declines were 3 to 1 positive on New York Stock Exchange, and 3 to 1 positive on Nasdaq. Up/down volume was 5 to 1 positive on New York, with total volume of 620 million shares. Nasdaq traded over 1 2/3 billion, and had a 4 to 1 positive volume ratio. TheTechTrader.com board was mostly higher. The Nasdaq 100 stocks did very well today, with Apple Inc. (AAPL) up 16.14 to 681.32. Amazon Inc. (AMZN) was up 6.92 to 256.59, and Google Inc. (GOOG) jumped 3.04 to 756.50. Other point-plus gainers of note included Pharmacyclics Inc. (PCYC), up 2.93 to 64.08, Onyx Pharmaceuticals, Inc. (ONXX) up 2.12 to 84.64, Goldman Sachs (GS) 2.15 to 115.23, International Business Machines Corp. (IBM) 1.91 to 205.91, and SolarWinds, Inc. (SWI) 1.85 to 56.34. The Direxion Daily Small Cap Bull 3X Shares (TNA) was up 2.04 to 62.95 and the Direxion Daily Financial Bull 3X Shares (FAS) gained 2.92 to 106.11. There were a lot of percentage gainers on our board today. AspenBio Pharma, Inc. (APPY) was up 90 cents to 2.74, or 49%, on 2.2 million shares. That was a 2500% increase in volume. Royale Energy Inc. (ROYL) jumped 1.07 to 4.32, or 33%, on 6.4 million shares, on positive news on some of their exploratory ventures. Tempur Pedic International Inc. (TPX) gained 3.86 to 30.64, or 14%, on 11.8 million shares. First Solar, Inc. (FSLR) advanced 2.21 to 23.11, or 10 1/2%, on 14.6 million shares. Progress Software Corp. (PRGS) exploded for 2.07 to 21.23, or 11%, on 1.7 million shares. Aruba Networks, Inc. (ARUN) was up 1.94 to 22.33, Achillion Pharmaceuticals, Inc. (ACHN) up 81 cents to 10.30, Patrick Industries Inc. (PATK) 96 cents to 14.98, Medivation, Inc. (MDVN) 3.49 to 56.90, and NXP Semiconductors NV (NXPI), a new swing trade, 1.61 to 25.37. Direxion Daily Gold Miners Bull 3X Shrs (NUGT) shot up 1.41 to 17.94. VelocityShares 3x Long Silver ETN (USLV) jumped 2.48 to 41.49. ProShares Ultra Long DJ-UBS Natural Gas (BOIL) snapped back 2.63 to 49.87. Gulfport Energy Corp. (GPOR) popped 1.84 to 31.16, and CommVault Systems, Inc. (CVLT) ran up 4.22 to 59.31 today. Stepping back and reviewing the hourly chart patterns, the indices were a little mixed in the morning, but came onto resistance and ran hard midday into early afternoon. They stalled right at resistance near the declining topsline, lateral price resistance, and declining moving averages. There is some formidable resistance just overhead here. We’ll have to see whether this is a technical rebound within a downtrend, or something more substantial. Let’s see how it goes tomorrow. Good Trading!