Best Financial Markets Analysis Article The stock market indices managed to eek out a gain at the end of the day today, only because of a late afternoon rally.

The day started out on the plus side and then sold off in a 3-wave decline by midday, reaching the session lows at that point. When further downside was unable to be attained, the indices tried the upside, tested the declining topslines, backed off there, but came on again and blew through them with a couple hours to go. They then stair-stepped their way higher near the afternoon highs at the close to put the indices back in the plus column.

At the end of the day, the Dow was up just 5.74 at 10.255.28, the S&P 500 up 4.45 at 1102.83, and the Nasdaq 100, however, was up 16.07 at 1895.66.

Advance-declines today were very positive by about 19 to 11 on the New York Stock Exchange, and by about 8 to 5 on Nasdaq. Up/down volume was 7 to 4 positive on New York on total volume of 1.2 billion. Nasdaq traded 2.1 billion shares and had about a 3 to 1 positive ratio.

Our Charts of the Day:

Aruba Networks, Inc. (ARUN), a new one we've been watching, broke out today. After dropping and forming a kind of head-and-shoulders bottom, this stock turned around and broke through the April and late May highs today, jumping 40 cents on 3.8 million shares with thrusts in On-Balance Volume. This one may reach 15 1/2, and then gets started toward the 18.00 range.

Quest Software Inc. (QSFT) made a new 8-year high today, breaking out across multiple tops. You can see on the chart the 8-year base pattern, which can support a very big move. The significance of today's action is that it broke out of a little consolidation pattern it's been in, and then it jumped 76 cents, or nearly 4%, today. Volume and technicals are starting to accelerate. Ultimately, I look for this stock to make a move in to the mid-20s, then low 30s and more.

Transocean Ltd. (RIG) has gotten battered by 50% in the last 6 weeks. Long-term support was hit yesterday and it bounced. Today it took off, snapped back 2.71, and closed just pennies off the high for the day on 29 million shares. I suspect that just based on the simple Fibonacci Retracement it could get this stock to the 60-63 zone, my short-term trading target.

Westport Innovations Inc. (WPRT), a new portfolio position, which three times in the last couple weeks has held the 13.40 zone, snapped back with a vengeance yesterday, backed off in the morning, and then came on strong to close right at resistance. A break through here, around 17.30, and I'm looking for a move that takes this up toward the 20-20 1/2 zone. Beyond that something in the low to mid-20s may be doable.

Reviewing our watchboard:

TheTechTrader.com board was mostly up today. Leading the way was Google Inc. (GOOG), up 12.23 to 505.60. Transocean Ltd. (RIG), mentioned above, jumped 2.76 and closed at 51.11 on 29 million shares. Coinstar Inc. (CSTR), one of our current favorites, was up 2.77 at 57.83, and Amazon.com Inc. (AMZN) gained 2.45 at 128.76.

Among other gainers of note, Xyratex Ltd. (XRTX) advanced 59 cents to 16.30, Solarfun Power Holdings Co. Ltd. (SOLF) 53 cents to 7.50, RINO International Corporation (RINO) 62 cents to 13.23, Northern Oil and Gas, Inc. (NOG) 66 cents to 15.08, and Brigham Exploration Co. (BEXP) 59 cents to 18.48 in a firm oil group.

In addition, Mindspeed Technologies Inc. (MSPD) jumped 60 cents to 9.65, Cree Inc. (CREE) 85 cents to 68.22, Cirrus Logic Inc. (CRUS) 35 cents to 14.93, Baidu, Inc. (BIDU) 68 cents to 76.66, and China Automotive Systems Inc. (CAAS) 45 cents to 18.94.

ETFs were very narrowly mixed today, with the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) up just 55 cents to 48.23, while the iPath S&P 500 VIX Short-Term Futures ETN (VXX) dropped 47 cents to 28.40.

Other losses of note, Goldman Sachs Group, Inc. (GS) could not get in the plus column and was off 79 cents at 144.04. Delcath Systems Inc. (DCTH) backed off 41 cents at 15.54, and Apple Inc. (AAPL) lost 83 cents to 263.12.

Stepping back and reviewing the hourly chart patterns, the indices were up at the opening, backed off in a 3-wave decline in the morning, and then stair-stepped their way higher in the afternoon to close not far off the session highs. Positive day for the bulls and the rally off the lows extended itself today nominally.

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.