Closing Technical Market Analysis for Thu August 10th 2017
The stock market got smashed today as the indices gapped down sharply on more sabre rattling between North Korea and the US The markets fell sharply in the first hour, bounced, but then came down sharply again midday, and bounced in the afternoon. It looked like, perhaps, an intra-day bottom was to be had, but important resistance could not be taken out, and then they rolled over in a fifth intraday wave, closing near the session lows.
The S&P 500 dropped from 2491 to 2438, the Nasdaq 100 dropped 5975 to 5788, both in three sessions. That’s a pretty sharp drop, virtually, with no more than an intraday intimate rally, and overall looks like they are five waves down as well over the last 3 sessions. The indices are at the point where they are decently oversold. The oscillators are getting oversold as well as the McClellan Oscillator closed at -141, reaching as low as -164 intraday. In addition the VIX volatility index had a huge run-up today, jumping to 16.17, net on the day, a gain of over 44%, closing over 16.00 for the first time since April. We’re right at resistance on that. If the market decline extends further there could be a spike-up like we haven’t seen in a while and an even deeper oversold oscillator readings
Net on the day, the Dow was down 204.69 at 21,844.01, just a point off the low. The S&P 500 was down 35.81 at 2438.11, just a few cents off the low. The Nasdaq 100 was down 131.20 at 5788.19, which is more than two percent, and 5 cents off the low.
Advance-declines were 6 to 1 negative on the New York Stock Exchange, and a little less than 4 to 1 negative on Nasdaq. Up/down volume was a little less than 6 to 1 negative on New York, total volume of 3.6 billion shares traded. The Nasdaq traded a little less than 2.2 billion shares and had a 4 1/2 to 1 positive volume ratio.
TheTechTrader.com board was nearly all red. Priceline.com (PCLN) was down 57.18, closing under 1850 at 1849.62, Alphabet Inc. (GOOG) down 15.66 to 907.24, Apple Inc. (AAPL) down 5.11 to 155.32, Amazon.com, Inc. (AMZN) 25.09 to 956.92, Netflix, Inc. (NFLX) 6.64 to 169.14. Baidu, Inc. (BIDU) dropped 7.73 to 222.57, Facebook, Inc. (FB) fell 3.78 to 167.40
The only stocks on our main board to the upside today were two biotech’s we follow, and both are swing trades. Impax Laboratories Inc. (IPXL) jumped 1.65 to 18.20, and Sangamo Therapeutics, Inc. (SGMO) ran 1.05 to 9.50.
On the downside, it was a blood bath. The biotech’s got hit really hard. Bluebird bio, Inc. (BLUE) was down 6.95 to 90.05, Omeros Corporation (OMER) down 1.34 to 23.56, Spark Therapeutics, Inc. (ONCE) 1.67 to 75.02, Achaogen, Inc. (AKAO) 1.46 to 16.69, and Clovis Oncology Inc (CLVS) 1.39 to 69.59.
The Direxion Daily S&P Biotech Bull 3X ETF (LABU) plunged to 55.52, down 6.85.
In addition, Dynavax Technologies Corporation (DVAX), on a secondary, was down 1.35 to 15.85, and NVIDIA Corporation (NVDA) down 7.37 to 164.74, were among many others.
Checking TheTechTrader.com percent-gain leaderboard, Swing trade Hudson Technologies Inc. (HDSN) gained 1.30, or 16%, to 9.29, on 7.6 million shares traded.
The Chefs’ Warehouse, Inc. (CHEF) bounced 2.75, or 19%, to 17.25, on nearly a million shares traded. Perrigo Company plc (PRGO) popped 10.47, or 16%, to 76.84, on over 10 million shares traded.
The ProShares Ultra VIX Short-Term Futures (UVXY) ran 8.70, or 27%, to 40.93, on 70 million shares traded while the related VOLATILITY S&P 500 (VIX) jumped 4.93, or 44%, to 16.04.
Stepping back and reviewing the hourly chart patterns, the indices opened down, bounced, came back down midday, and bounced in the afternoon. When resistance couldn’t be taken out, they rolled over and closed near the session lows in an oversold condition
Let’s see what happens tomorrow.