Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The Many Forex Trading Opportunities the Fed Day Has Dealt Us - 19th Sep 19
Fed Cuts Interest Rates and Gold Drops. Again - 19th Sep 19
Silver Still Cheap Relative to Gold, Trend Forecast Update Video - 19th Sep 19
Baby Boomers Are the Worst Investors in the World - 19th Sep 19
Your $1,229 FREE Tticket to Elliott Market Analysis & Trading Set-ups - 19th Sep 19
Is The Stock Market Other Shoe About To Drop With Fed News? - 19th Sep 19
Bitcoin Price 2019 Trend Current State - 18th Sep 19
No More Realtors… These Start-ups Will Buy Your House in Less than 20 Days - 18th Sep 19
Gold Bugs And Manipulation Theorists Unite – Another “Manipulation” Indictment - 18th Sep 19
Central Bankers' Desperate Grab for Power - 18th Sep 19
Oil Shock! Will War Drums, Inflation Fears Ignite Gold and Silver Markets? - 18th Sep 19
Importance Of Internal Rate Of Return For A Business - 18th Sep 19
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Stock Market Ominous Sell-Off

Stock-Markets / Stock Index Trading Apr 20, 2009 - 07:44 PM GMT

By: Harry_Boxer


The indices had a very sharp decline on Monday that may very well have reversed the entire 6 week uptrend. With the indices closing at the lows for the day and down sharply, led lower by the financials which had led the market up, it was a seemingly significant negative day on Wall Street.

The day started out with a big gap down on pre-market negative futures. After gapping lower, they went sharply lower after that. They managed to stabilize by mid-morning on the Nasdaq 100, although the S&P 500 continued to make lower lows all day. Eventually, in the afternoon, the NDX also set lower lows, and despite the fact that the NDX did bounce in the last half hour, the SPX after initially following rolled over hard and closed at the lows for the day going away.

Net on the day the Dow was down 289.60 to 7841, the S&P 500 down 37.21 to 832.39, and the Nasdaq 100 down 44.55 at 1309.37. The Philadelphia Semiconductor Index (SOXX) fell 6 percent, or14.62, to 240.19.

The technicals were extremely negative, with 300 up and 2800 down on advance-declines on New York and 454 and 2640 down on Nasdaq. Up/down volume was the story today, with about a 22 to 1 negative ratio on Nasdaq on total volume of more than 3 billion, and more than 27 to 1 negative on New York on total volume of close to 1 3/4 billion.

Needless to say, board was extremely negative except for the ultrashorts, and a couple of our picks did very well today. Portfolio position DG FastChannel (DGIT) reached a new 6 1/2-month high at 21.72, closing at 21.35, up 73 cents. AgFeed Industries (FEED), also a portfolio position, after having tested 3 earlier in the session, closed at 3.64, up 34 cents, at the highs for the day going away on more than 4 million shares. Recent pick Dendreon (DNDN)jumped 1.53 to 19.52 on 17.7 million shares.

The ultrashorts obviously did very well today, with the UltraShort Financial ProShares (SKF) up 11.80 to 70.45, the UltraShort Real Estate ProShares (SRS) up 5.74 to 32.24, and the Direxion Large Cap Bear 3X Shares (BGZ) up 5.80 to 52.11. The Direxion Financial Bear 3x Shares (FAZ) had a stellar session, closing near the highs for the day at 11.63, up 2.73 on 234 million shares traded.

On the downside, the ultralongs got hammered, with the Direxion Financial Bull 3x Shares (FAS) down 2.82 to 6.58, and the Ultra Oil & Gas ProShares (DIG) 2.26 to 22.28, as oil dropped sharply. The iShares MSCI Brazil Index ETF (EWZ) dropped 2.47 to 41.39, and the Direxion Large Cap Bull 3X Shares (BGU) 3.82 to 25.82.

Goldman Sachs (GS) led the financials lower, down 5.59 to 115.01, just a penny off its low. JP Morgan (JPM) fell 3.57 to 29.69 on 109 million. Morgan Stanley (MS) dropped 1.48 to 23.52 on 45 million. Wells Fargo (WFC) closed near the lows for the day at 17, down 3.26 on 161 million. Bank of America (BAC) lost 2.58 to 8.02 on 193 million shares. Hartford Financial Services (HIG) also hammered at 9.11, down 2.07, on more than 19 million traded.
Other losses of note, Apple (AAPL) dropped 2.92 to 120.50, and Research in Motion (RIMM) 3.25 to 65.00. Mosaic (MOS) lost 2.85 to 39.33, Potash (POT) 3.37 to 86.40, and Agrium (AGU) 1.05 to 39.01.

Energy Conversion Devices (ENER) lost 1.56 to 14.26 in a weak solar sector, with SunPower (SPWR) down 2.20 to 24.25. Sequenom (SQNM) was down 1.45 to 14.82.

The shippers were hit hard, with DryShips (DRYS) down 90 cents to 6.27, and Excel Maritime (EXM) 1.04 to 6.50.

Stepping back and reviewing the hourly chart patterns, the indices gapped lower, took out the moving averages on the hourly charts, and kept going, with the S&P 500 closing right at its low for the day.

So, is this the trigger day that initiates a new downtrend and takes out the entire rising channel? We'll see if we get a downside follow-through, but today was an ominous session for the bulls.

Good trading!


For more of Harry Boxer, sign up for a FREE 15-Day Trial to his Real-Time Technical Trading Diary. Or sign up for a Free 30-Day Trial to his Top Charts of the Week service.

(c) 2009 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at . In using any portion of Harry Boxer's content, you agree to the terms and conditions governing the use of the service as described in our disclaimer at

Mr. Boxer's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Harry Boxer Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules