The stock market indices took it on the chin Friday as profit taking set in and the indices finally had their worst losing week since January. Whether we get a downside follow-through next week and break the topping patterns that are appearing on the hourly charts is still in question. Key support around the 1995 - 2000 zone on the Nasdaq 100 and 1180-83 zone on the S&P 500 certainly should be tested.

The day started out with a move down and a sharp one. They bounced around mid-morning, consolidated, could not get back to resistance, and then rolled over hard into mid-day. By early afternoon they bounced around again, tried to rally back but also couldn't get through resistance, and had a 5th-wave decline that closed near the session lows going away.

Net on the day, the Dow barely held 11,000 today closing at 11,008.61, down 158.71. The S&P 500 was down 20.08 to 1186.69, and the Nasdaq 100 got hit hard for 2.2%, closing down 42.26 at 2000.63.

Advance-declines were 3 to 1 negative on New York Stock Exchange and worse that 3 1/2 negative on Nasdaq. Up/down volume was 6 1/2 to 1 negative on New York on total volume of under 1.6 billion. Nasdaq traded 2 3/4 billion and had a 4 1 /2 to 1 negative ratio. So it was a definitive down day on Wall Street with some of the big market leaders getting hit the hardest.

TheTechTrader.com board was mostly down. Leading the day was Baidu, Inc. (BIDU), which dropped 20.91 to 688.96, and Goldman Sachs Group (GS), down 15.04 at 145.20. Apple (AAPL) lost 7.55 to 261.09, and Amazon.com (AMZN) 4.63. to 137.10. Google (GOOG) also lost 6.31 to 525.70. So the market leaders definitely got hit today.

Other multiple point-plus losers included Cree Inc. (CREE) at 73.21 down 2.79, American International Group (AIG) at 38.09 down 1.33, and Las Vegas Sands Corp. (LVS) 24.86 down 1.19 to complete the point-plus losers on our board.

Other losers of note, however, were TiVo Inc. (TIVO), down 86 cents to 17.52, and RINO International (RINO), off 62 cents to 17.22. Eastman Kodak Co. (EK) got hit for another 81 cents to 6.13 today.

Delcath Systems (DCTH) gave back 87 cents to 15.31, and China Agritech (CAGC) was down 72 cents to 16.51, now nearly cut in half from its peak.

On the plus side, Dendreon (DNDN) after yesterday's approval gained another 6 points at one point but backed off and closed as 54.06, up 3.88. Acme Packet, Inc. (APKT) after positive news closed at 26.14 up 5.07, reaching a high of 27.73.

The ultra-short ETFs certainly had a good day today. Leading the way, the UltraShort Real Estate ProShares (SRS) and the Direxion Daily Emerging Markets Bear 3x (EDZ) were both up 1.54. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) gained 1.63 to 21.21, Direxion Daily Financial Bear 3x (FAZ) 82 cents to 12.24, and the Direxion Daily Large Cap Bear 3x (BGZ) 62 cents to 13.08.

Other ETFs included Direxion Daily Small Cap Bear 3x (TZA) at 5.92 up 48 cents, and Direxion Daily Real Estate Bear 3X Shares (DRV) at 6.84 up 57 cents.

Stepping back and reviewing the hourly chart patterns, the indices were down in a distinct 5-wave decline today closing near the session lows, certainly a negative way to close the day, the week, and the month.

As mentioned earlier, the indices had their first biggest losing week since January. We'll see if they get a downside follow-through Monday, but the top may be in. We'll see if we get confirmation early next week.

Good trading!

Harry

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) 2010 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at info@advicetrade.com . 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 http://www.thetechtrader.com

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

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

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.