The stock market indices ended the week on a down note, but they certainly had some volatility. Initially, the markets sold off from the opening on Friday, held support, and then bounced to new rally highs, reaching 1250 NDX and 840 SPX. But that was right at important secondary resistance. They failed to get through, and then had an orderly 5-wave decline that lasted until mid-day. Just before lunch hour the indices reached support and bounced sharply to retest the highs but fell short, pulled back again late afternoon, bounced in the last hour but again couldn't get through and in the last 5 minutes sold off quite sharply, with the NDX dropping 8 points and the S&P 500 more than 6 points.

It was a disappointing close, with the Dow down more than 82 to 7850, the S&P 500 down 8 1/3 to just under 827, and the Nasdaq 100 down about 6 to just under 1237. The Philadelphia Semiconductor Index (SOXX) was up 2.65 today, and continues to positively diverge.

The technicals were negative by 3 to 2 on decliners over advancers on New York, but only by about 130 issues on Nasdaq. Up/down volume was 8 to 3 negative on New York on total volume of a little less than 1 1/4 billion. Nasdaq traded just under 2 billion and had about an 11 to 8 negative volume ratio.

TheTechTrader.com board was mixed, with many stocks narrowly mixed, but there were a few point-plus changes. The Direxion Financial Bear 3x Shares (FAZ) was up 4.64, and the Direxion Large Cap Bear 3X Shares (BGZ) up 1.77.

The agriculture group was mixed, with Agrium (AGU) up 1.32 after reporting earnings, and CF Holdings (CF) down 37 cents, Mosaic (MOS) 17 cents, and Potash (POT) 3 cents.

On the plus side, old favorite Sigma Designs (SIGM) woke up and jumped 1.39 to 13.80 on 2 1/4 million shares, the heaviest volume 9 months, as the stock broke out of a multi-month base and may be starting an important move. SunPower (SPWR) at 35 was up 73 cents, and TeleCommunication Systems (TSYS) up 31 cents to 9.21.

Several of our portfolio positions ended positively today, with DG FastChannel (DGIT), our Chart of the Day last night, up 68 cents to 16.18 on the heaviest volume in nine months. GigaMedia (GIGM) closed up 13 cents, and Energy Conversion Devices (ENER) 22 cents. Net 1 Ueps Technologies (UEPS) gained 13 cents.

On the downside, JP Morgan (JPM) was down 1.50, Geron (GERN) got smacked for 1.39 today on news of a secondary on 11.9 million shares. Research in Motion (RIMM) dropped another 1.91, and Wells Fargo (WFC) lost 1.04 in a mostly weak financial sector.

Stepping back and reviewing the hourly chart patterns, the indices basically had a back-and-fill session, but closed near the low end of the range for the day, down on the session, but above key support.

So we'll see what they can do on Tuesday, as Monday the markets are closed.

Good trading!

Harry

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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.

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