Yellen’s Talk of Interest Rate Hike Causes Stock Market Plunge

Stock-Markets / Stock Markets 2016 May 19, 2016 - 06:56 AM GMT

The stock market indices had a really volatile and interesting day today due to the FOMC. The day started out with a very nice run up in a 3-wave, corrective-type move, reaching resistance midday just before the FOMC. When that occur, and indications of a probable or potential raise in rates in June, it took the market back form 4362 down to 4305, a big, 57-point drop. The S&P 500 dropped from 2060 to 2035, 25 points. They backed and filled in a right-handed, extended-V bottom to finish positive, and get the blue chips back down near flat.

Net on the day, the Dow was down 3.36 at 17,526.62,108 points off the low. The S&P 500 was up .42 at 2047.63, 13 points off the low. The Nasdaq 100 was up 15.76 at 4338.23, 35 points off the low.

Advance-declines were a little less than 2 to 1 negative on the New York Stock Exchange, and 3 to 2 positive on the Nasdaq. Up/down volume was a little less than 2 to 1 negative on New York, total volume of 4 billion shares traded. The Nasdaq traded 1.9 billion shares and had a 12 to 7 positive volume ratio.

TheTechTrader.com board was mixed. Priceline.com (PCLN) was down 10.75 to 1267.27, but Google Inc. (GOOG) was up just 40 cents to 706.63, Apple Inc. (AAPL) up 1.07 to 94.56, Amazon.com Inc. (AMZN) 2.18 to 697.45 and Netflix, Inc. (NFLX) 1.87 to 90.50.

Baidu, Inc. (BIDU) dropped 1.59 to 169.45, while Facebook, Inc. (FB) gained 30 cents to 117.65, and First Solar, Inc. (FSLR) popped 20 cents to 48.71.

Tesla Motors, Inc. (TSLA) jumped 6.51 to 211.17, but after hours they were down 8 points.

Adeptus Health Inc. (ADPT) advanced 1.73 to 66.25, and Juno Therapeutics Inc. (JUNO) climbed 1.34 to 39.68.

The Direxion Daily S&P Biotech Bull 3X ETF (LABU), in a firm biotech group, gained 1.54 to 28.36.

On the downside, Targa Resources Corp. (TRGP), in a weak oil group, pulled back 1.69 to 42.12.

Checking the TheTechTrader.com percent-gain leaderboard, Castlight Health, Inc. (CSLT) bounced 85 cents to 4.05, or 27%, on 2.6 million shares traded.

Great Basin Scientific, Inc. (GBSN) led the way today, up 1.92 to 3.65, or 111%, on 11.7 million shares traded, and trading even higher in after hours.

The Andersons, Inc. (ANDE), on earnings, spiked 6.13 to 32.07, or 24%, on 2.3 million shares. Five9, Inc. (FIVN) ran 1.38 to 10.00, or 16%, on 1.8 million shares. MacroGenics, Inc. (MGNX) had a good day, up 3.02 to 21.06, or 17%, on 1.2 million shares.

Among other gainers, SolarEdge Technologies, Inc. (SEDG) was up 1.34 to 19.81, Seattle Genetics, Inc. (SGEN) up 2.17 to 38.02, NICE Systems Ltd. (NICE) up 2.75 to 66.56, Portola Pharmaceuticals, Inc. (PTLA) 1.32 to 25.91, and Neurocrine Biosciences Inc. (NBIX) 2.25 to 45.64.

The VelocityShares 3x Inv Natural Gas ETN (DGAZ) bounced around and closed with a gain of 1.28 to 17.93, or 8%, on 5.2 million shares. The Direxion Daily S&P Biotech Bull 3X ETF (LABU) stair-stepped its way up 1.54 to 28.36

Stepping back and reviewing the hourly chart patterns, the indices were up all morning into early afternoon before the FOMC, and then plunged, but managed to take back about half the losses.

Good Trading!

Harry

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