The markets surprised late in the session after another nasty session, and ended with a late afternoon last-hour rally that brought all the indices back into positive territory except for the SOXX.

The day started out with a move down, holding support. They backed and filled for a couple hours in what looked like bear-flag formations, then they ended up rolling over hard late morning into mid-afternoon. They tried a bounce that was unsuccessful, then went to lower lows, with the NDX reaching as low as 1113 and the S&P 500 just under 827, not too far off of last Thursday's lows. But they did make slightly higher lows, and then turned them around and rallied sharply, with the NDX moving from 1113 to 1153, about a 40-point rally. The S&P 500 rallied from 827 to 858, 31 points, and they both closed near their afternoon rally highs, and just above secondary resistance. So indeed an impressive snapback, but it appeared to be short covering once again.

Net on the day the Dow was up 151, the S&P 500 8.36, and the Nasdaq 100 just 3 3/4. The Philadelphia Semiconductor Index (SOXX) was down 3.83, but that was about 6 points off its low, reaching multi-year lows under 186.

The technicals came back but did not manage to get into positive territory. Advance-declines were negative by 3 to 2 on both New York and on Nasdaq. Up/down volume was 8 to 7 negative on New York on total volume of 1.58 billion. Nasdaq traded 2 1/3 billion and had about 12 to 11 negative volume ratio.

TheTechTrader.com board had a wild afternoon. Many stocks that were down did manage to get back into plus territory. The BGZ, which is 3x short large-cap ETF, dropped to 85 at one point, and then rallied to 97.81, more than 12 1/2 points, only to roll over in the last hour on a market rally, closing down 2.05 on the day. The ERX, which is the ultra energy ETF, rallied up 4.27 to 48.89 today. The DIG, also an oil & gas ETF, which we hold in our model portfolio, was up 1.94 to 31.39.

AAPL gained 1.77 to 89.91, about 3 1/2 points off its low. AVAV snapped back with a vengeance from 29.90 to 32 1/4, closing at 31.27, up 1.66. And portfolio position EBS soared late in the session to close at 20.34, up 1.72.

Most other stocks were fractionally mixed other than the BGZ down 2.05 and SDS down 1.74. DryShips (DRYS) had a very negative session, making a new all-time low at 7.80, closing at 8.01, down 1.05 on 7.8 million shares. Energy Conversion Devices (ENER) closed at 26.31, down 2.55, and Sequenom (SQNM) dropped 15, down 1.54.

Stepping back and reviewing the hourly chart patterns, the indices continued lower in a 3-day down-channel, but late in the session roared back to close solidly in the plus column and taking out the declining tops line and lateral price resistance. But it remains to be seen whether there'll be any follow-through to the upside tomorrow.

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) 2008 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.