Stock Market Huge Turnaround Tuesday
Stock-Markets / Stock Markets 2010 May 05, 2010 - 01:33 AM GMTThe stock market indices had a significant turnaround Tuesday down session and plunged from the get-go with a big gap to the downside. A strong downside move early in the morning plunged the indices down to 1960 on the Nasdaq 100 and 1171 on the S&P 500 before bouncing, but then they made lower lows.
Those were the session lows on the NDX. They then bounced back and forth for what looked like potential head and shoulder bottom patterns, but the neckline resistance proved too much as they rolled over into the final hour. However, in the last 15 minutes they bounced off the lows to pare back the losses.
Net on the day, the Dow was down 225.06 at 10,926.77, the S&P 500 down a whopping 28.66 at 1173.60, and the Nasdaq 100 down 62.63 at 1968.97.
Advance-declines were 439 to 2667, about a 6 to 1 negative ratio on the New York Stock Exchange. Up/down volume was a whopping 16 to 1 negative ratio with total volume just under 1.6 billion on New York. Nasdaq had 405 issues up and 2343 down with a 5 1/2 to 1 negative ratio. The up/down volume on Nasdaq was about 11 to 1 negative as well with 2.7 billion on the downside and 235 million on the upside.
Here are our Charts of the Day:
Cabela's Inc. (CAB), a sporting goods chain, had a big day, jumpinh 2.32 or 12.2% on 4.1 million shares. That's the biggest volume this year and the biggest volume since December when the stock popped. The price movement today sets a new 2 1/2 year high and brings in a target around the mid-20's, and then the high 20's, around 28 1/2-29.
Direxion Daily Financial Bear 3x (FAZ) had another good day, up 87 cents or 7 1/2%. The 15-minute chart shows that the basing pattern, which is in play, is being severely tested at the neckline resistance level. If we can get a follow-through on this we can see this stock spike up towards the 13 3/4 level rather shortly. That's my initial target. My secondary target is up around 15.
On the short side, Sohu.com Inc. (SOHU) has had a beautiful down channel for the last seven or eight months. It broke down through a rising channel bottom and began to accelerate, down 2.18 or 4 1/2%. My trading target is at the bottom of the channel down around 40, short-term target, which also coincides with lateral price support. Secondary target beneath that at 35-36.
Walter Energy, Inc. (WLT), which I spotted this weekend, is continuing its rapid decent from the high 90's down in to the mid-70's just in the last week. Today it accelerated down 5.09, or 6%, cracking through key support over the last couple days. My next target is down around 71-72, followed by a secondary target around 64-65.
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 |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.