Closing Technical Market Analysis for Wed May 17th 2017
The stock market indices had an extreme turn-around day today. The day started out with a plunge at the get-go, the futures going sharply lower based on the Trump news, they had a very brief five or ten-minute bounce, and then came down hard and plunged again. By late morning, the market formed bear wedges after rallying back, but could not sustain, and rolled over hard in the afternoon. Late in the afternoon, they formed bear flags, and went even lower. The indices completed a five-wave decline at the end of the day, finishing sharply lower.
Net on the day, the Dow was down 372.82 at 20,606.93, not too far off the low for the day. The S&P 500 was down 43.64 at 2357.03, a point off the low. The Nasdaq 100 was down 143.89 at 5580.55, just two points from its low.
Advance-declines were 4 to 1 negative on the New York Stock Exchange, and 6 to 1 negative on the Nasdaq. Up/down volume was 4 1/2 to 1 negative on New York, total volume of over 4.1 billion shares traded. The Nasdaq traded 2 1/2 billion shares and had an 8-8 1/2 to 1 negative volume ratio.
TheTechTrader.com board was decimated. Major players on the Nasdaq 100 got smashed. Priceline.com (PCLN) was down 34.11 1795.69, Alphabet Inc. (GOOG) down 23.38 to 919.62, Apple Inc. (AAPL) down 5.22 to 150.25, Amazon.com, Inc. (AMZN) 21.28 to 944.79, and Netflix, Inc. (NFLX) 6.21 to 153.20.
Baidu, Inc. (BIDU) fell another 4.59 to 186.05, Facebook, Inc. (FB) gave back 4.93 to 144.85, and First Solar, Inc. (FSLR) dropped 1.80 to 34.98.
Tesla Motors, Inc. (TSLA) lost 10.90 to 306.11.
Other stocks to the downside included NVIDIA Corporation (NVDA) down 9.09 to 127.72, Shopify Inc. (SHOP) down 5.09 to 89.84, Microsoft Corporation (MSFT) 1.93 to 67.48, Kite Pharma, Inc. (KITE) 5.06 to 70.59, bluebird bio, Inc. (BLUE) 2.50 to 86.10, Checkpoint Therapeutics, Inc. (CKPT) 1.08 to 38.00, Applied Materials, Inc. (AMAT) 2.31 to 42.76,
The Direxion Daily S&P Biotech Bull 3X ETF (LABU) dropped 4.49 to 45.21. The VanEck Vectors Semiconductor ETF (SMH) closed down 3.19 to 81.58.
Stepping back and reviewing the hourly chart patterns, the indices closed at the lows for the day going away. We are oversold intraday, however, the oscillators are not oversold enough. The McClellan oscillator is at minus 83, which is nowhere near enough. We better make it tomorrow or this could be the beginning of a much more severe, intermediate slide.
Let’s see what happens.