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Week Starts Off Negatively for Stock Market

The stock market indices started the week off negatively, with large gaps to the downside, followed by steady declines in channels by midmorning.

 

By Harry Boxer

They reached their morning lows, rallied back in what looked like rising wedges, but when they failed to get through resistance, rolled over to make lower lows, only slightly so. The Nasdaq 100 got down below 3890 and the S&P 500 (NYSEARCA:SPY) below 1830. Midafternoon they appeared very oversold intraday and tired of going down, and staged a very big rally, taking the Nasdaq 100 from 3890 to 3980, 90 points. The S&P 500 jumped from 1828 to 1861, 33 points, but in the last 10 minutes, they backed off to pare back the gains. The rallies were about .618 Fibonacci retracements. The late pullback to test support did hold, but they firmed up a little bit in the last few minutes to close down on the day, but net/net, they cut their losses in half, which were nearly 400 points on the Dow(NYSEARCA:DIA).

Net on the day, the Dow was down 177.92 at 16,027.05 to capture 16,000 again after being near 1508.00. The S&P 500 was down 26.61 to 1853.44 and had an 1873 high. The Nasdaq 100 was down 63.80 to 3960.67, after being down more than double that earlier in the day.

Advance-declines were 4 to 1 negative on New York Stock Exchange and 2 1/2 to 1 negative on Nasdaq. Up/down volume was 4 1/2 to 1 negative on New York, total volume of 5 1/2 billion shares traded. The Nasdaq(NYSEARCA:QQQ) traded 2 2/3 billion shares and had a 4 to 1 negative volume ratio.

TheTechTrader.com board was mostly negative. Priceline.com (PCLN) was down a whopping 41.75 to under 1000 at 973.80, Google Inc. (GOOG) down just 83 cents to 682.74, Amazon.com Inc. (AMZN) down 14.03 to 488.10, but Apple Inc. (AAPL) gained 99 cents to 95.01, and Netflix, Inc. (NFLX) popped 53 cents to 83.32.

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Tesla Motors, Inc. (TSLA) lost 14.61 to 147.99, and Baidu, Inc. (BIDU) gave back 29 cents to 145.05. Facebook, Inc. (FB) dropped 4.32 to 99.75.

Other stocks to the downside, Universal Display Corp. (OLED) was down 3.73 to 41.69, NewLink Genetics Corporation (NLNK) down 2.37 to 20.86, and Mobileye N.V. (MBLY) down 1.92 to 24.54.

In a weak solar group JinkoSolar Holding Co., Ltd. (JKS) lost 1.46 t 18.62, First Solar, Inc. (FSLR) gave back, 89 cents to 64.18, Canadian Solar Inc. (CSIQ) dropped 1.07 to 18.37, and SolarCity Corporation (SCTY) closed lower at 1.63 to 27.94.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU) got whacked for 1.06 to 5.23.

Gainers of note included Bristol-Myers Squibb Company (BMY), closing 2 points off its low, up 1.09 to 60.72, and Sientra, Inc. (SIEN), on a contract, had a very nice session, up 1.36 to 9.96.

Checking the TheTechTrader.com percent-gain leaderboard, ZAGG Inc (ZAGG) jumped 1.08 to 10.30, or 12%, on 1.2 million shares. Outerwall Inc. (OUTR) popped 2.97 to 30.01, or 11%, on 1.6 million shares. GoPro, Inc. (GPRO) snapped back 1.03 to 10.99, or 10%, on 15 million shares.

The Direxion Daily S&P Biotech Bear 3X ETF (LABD) was the winner today, up 13.79 to 93.11, or 17%, and closed about 3 1/2 points off its high on a late sell off. The ProShares Ultra VIX Short-Term Futures (UVXY) advanced 4.46 to 50.06, or 10%, on 30 million shares.

Gold ETF’s did great in the morning. The Direxion Daily Jr Gld Mnrs Bull 3X ETF (JNUG) ran 5.37 to 48.20, or 12%, on 1.2 million shares, reaching as high as 51 earlier in the day.

Stepping back and reviewing the hourly chart patterns, the indices gapped down large in stair-step fashion in 5-wave declines, rallied to midday highs, made nominal new, afternoon lows on a pull back, and then rallied very strongly in the last hour, hour and a half to finish with a loss, but way off the lows.

Let’s see what happens tomorrow.

Good Trading!