Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Due for 9-10% Pull Back? - 25th April 19
Dow Transportation Stocks Sector Is Testing Resistance - 25th April 19
INSOMNIA i64 UK Best Games Festival Vlog of What it's Like to Attend - 2019 - 25th April 19
In Just 45 Mins., Learn to Spot New Opportunities in ANY Market for FREE! - 25th April 19
If This Pattern Holds True, the US Economy Could Face the Worst Stagnation in History - 25th April 19
8 Reasons Why Investment in Education Always Pays Off - 25th April 19
Want To Earn A Safe 5% In Fixed Income? Buy Preferred Stocks - 24th April 19
Can Gold Price Rise Without a Rate Cut?  - 24th April 19
Silver’s Next Big Move - 24th April 19
How Can a College Student Invest Wisely? - 24th April 19
Prepare For Unknown Stock Market Price Action As New Highs Are Reached - 23rd April 19
Silver Plays a Small but Vital Role in Every Portfolio - 23rd April 19
Forecasting 2020s : Two Recessions, Higher Taxes, and Japan-Like Flat Markets - 23rd April 19
Gold and Silver Give Traders Another Buying Opportunity - 23rd April 19
Stock Market Pause Should Extend - 21st April 19
Why Gold Has Been the Second Best Asset Class for the Last 20 Years - 21st April 19
Could Taxing the Rich Solve Income Inequality? - 21st April 19
Stock Market Euphoria Stunts Gold - 20th April 19
Is Political Partisanship Killing America? - 20th April 19
Trump - They Were All Lying - 20th April 19
The Global Economy Looks Disturbingly Like Japan Before Its “Lost Decade” - 19th April 19
Growing Bird of Paradise Strelitzia Plants, Pruning and Flower Guide Over 4 Years - 19th April 19
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Stock Market Indices Hold Support and Continue Rally

Stock-Markets / Stock Index Trading May 07, 2009 - 04:16 AM GMT

By: Harry_Boxer


The stock market indices snapped back today and closed with solid gains after a very steep morning sell-off. They came back with a vengeance in a 3-wave rally that saw them reach new highs on the S&P 500 at 920 with about an hour to go. At that point the Nasdaq 100 failed to reach its highs and they sold off, but held the intraday trendlines and snapped back in the last 10-15 minutes to closer higher.

Net on the day the Dow was up 101.63 to 8512.28, and the S&P 500 up 15.73 at 919.73, closing less than a point off its high. The Nasdaq 100 was up just 0.04 at 1423.85, getting back into the plus column after being down almost all day. That was about 22 points off its low. The Philadelphia Semiconductor Index (SOXX) was up 1.91 to 270.61.

The technicals were positive by about 22 to 9 on advance-declines on New York and by just 334 issues on Nasdaq. Up/down volume was 3 to 1 positive on New York on total volume of 1.85 billion. Nasdaq traded a hefty 2.85 billion and had a 9 to 5 positive volume ratio. board was mixed. On the plus side, financials were very strong, with Goldman Sachs (GS) up 4.02 to 139.22 and Wells Fargo (WFC) soaring 3.62 to 26.84 on 255 million shares. Hartford Financial Services (HIG) was up 2.29 to 15.07, JP Morgan (JPM) up 2.40 to 37.22, Morgan Stanley (MS) up 1.30 to 28.51, and Bank of America (BAC) up 1.85 to 12.69.

As a result, the Direxion Financial Bull 3x Shares (FAS) had a stellar day, up 1.86 to 11.43 on 360 million shares. The iShares MSCI Brazil Index ETF (EWZ) was up 1.32 to 50.56, and the U.S. Oil Fund ETF (USO) had a strong session on rising oil, up 1.28 to 31.43. The low priced DXO double long was up 23 to 3.29.

DryShips (DRYS) gained nearly a dollar today, up 97 cents to 10.70, and Excel Maritime (EXM) was up 60 cents to 9.15 in a strong shipping sector. Research in Motion (RIMM) gained 1.67 to 77.07.

On the downside, ultrashorts got smashed, with the UltraShort Financial ProShares (SKF) down 6.19 to 43, the UltraShort Real Estate ProShares (SRS) down 1.54 to 20.82, and the Direxion Financial Bear 3x Shares (FAZ) losing 1.30 to 5.24 on 470 million shares, the heaviest volume in its history.

Stepping back and reviewing the hourly chart patterns, the indices were down and up in the morning, and then back down and up in the afternoon, rather volatile today, but closed with positive gains, continuing the rally and continuing to hold support despite the early sell-off. So the rally moves on. Although the market continues to look overbought and long in the tooth, the mini consolidations that it has been undergoing every couple sessions are alleviating some of the overbought conditions, and as a result the indices are able to still move higher. But I'm still anticipating a high in this timeframe.


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