Constructive Stock Market Consolidation or Potential Topping Pattern?

By: Harry_Boxer

The stock market had a volatile session, gapping up at the opening, coming down sharply in a 5-wave decline, and reaching the lows by midday. After taking out support they rallied sharply, taking the Nasdaq 100 from 5846 all the way up to 5883. The S&P 500 bounced from 2424 to 2435. A last 10-minute pullback pared back the profits, but they did finish in the positive column, but not with the best technicals.

Net on the day, the Dow was up 37.46 at 21,173.69. The S&P 500 was up 3.81 at 2433.14. The Nasdaq 100 was up 20.82 at 5877.59.

Advance-declines were 15 to 13 1/2 negative on the New York Stock Exchange, and 15 to 13 positive on the Nasdaq. Up/down volume was 4 to 3 negative on New York, and 5 to 3 positive on Nasdaq.

TheTechTrader.com board was mostlygreen today. Priceline.com (PCLN) was up just 51 cents to 1890.37, Alphabet Inc. (GOOG) up 4.51 to 981.08, Apple Inc. (AAPL) up 92 cents to 155.37, Amazon.com, Inc. (AMZN) 7.07 to 1010.01, and Netflix, Inc. (NFLX) 44 cents to 165.61.

Baidu, Inc. (BIDU) popped 1.78 to 187.53, Facebook, Inc. (FB) gained 31 cents to 153.12, but First Solar, Inc. (FSLR) dropped 50 cents to 36.94.

Tesla Motors, Inc. (TSLA) jumped another 6.80 to 359.65, touching over 360.00 at one point in the day.

bluebird bio, Inc. (BLUE) highlighted the day, exploding 10.95 to 109.15. Kite Pharma, Inc. (KITE) was up 5.46 to 82.10, and NVIDIA Corporation (NVDA) closed just under its new all-time high at 150.00, closing up 1.78 to 149.12.

On the downside, Mazor Robotics Ltd. (MZOR) was down 1.54 to 37.37, Exact Sciences Corporation (EXAS) dropped 1.89 to 34.70, and Aerie Pharmaceuticals, Inc. (AERI), on profit taking, fell 2.08 to 53.38.

Checking TheTechTrader.com percent-gain leaderboard, Carvana Co. (CVNA) closed up 3.13, or 33%, to 12.66, on 6 million shares traded. At Home Group Inc. (HOME) climbed 4.02, or 22%, to 22.53, on 1.9 million shares traded. Hawaiian Holdings, Inc. (HA) had a big day on earnings, up 6.50, or 12%, to 59.35, on 1.8 million shares traded. Editas Medicine Inc. (EDIT) ran 1.45, or 10%, to 15.64, on 1.3 million shares traded. Conns Inc. (CONN), one of our swing trades, bounced 1.70, or 10%, to 18.85, on 1.3 million shares traded, snapping back from a recent pullback.

The VelocityShares 3x Inverse Crude (DWT) gained 4.70, or 16%, to 34.80, on 3.4 million shares traded. The ProShares UltraShort Bloomberg Crude Oil (SCO) advanced 4.10, or 10%, to 44.01, on 2.3 million shares traded.

Among other gainers, HealthEquity, Inc. (HQY) was up 4.19 to 52.68, and New Oriental Education & Technology Group Inc. (EDU) up 6.54 to 82.66.

Stepping back and reviewing the hourly chart patterns, the indices gapped up, came down in a 5-wave decline midday, and then rallied back up to finish positive on the day after holding support or near it, and holding its rising 50-day moving average on the hourly chart.

Good Trading!

Harry

For more of Harry Boxer, sign up for a FREE 7-Day Trial to his Real-Time Technical Trading Diary.

(c) 2017 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.

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.