Stock Market Downside Follow Through!

Stock-Markets / Stock Markets 2011 Feb 24, 2011 - 03:36 AM GMT

The stock market indices started the day with a little bit of a bounce to the upside, and then rolled over immediately. At that point they spent the rest of the morning dropping. By midday they reached their session lows, and in the early afternoon they started to bounce back. That lasted until about 45 minutes to go, when they backed off again to increase the losses.

Net on the day, the Dow was down 107.01 at 12,105.78, reaching as low as 12,063 at one point. The S&P 500 was down 8.04 at 1307.40, with a low of 1299.55. The Nasdaq 100 fell 21.92 to 2300.94, reaching a low of about 2285.

Advance-declines were about 2 to 1 negative on the New York Stock Exchange, and 3 to 1 negative on Nasdaq. Up/down volume was 2 to 1 negative on New York with total volume of 1.3 billion. Nasdaq traded a little more than 2.4 billion shares, and had a 3 to 1 negative volume ratio as well.

Charts of the Day:

Click below to view video.

Reviewing our Watchboard:

TheTechTrader.com board had a vastly negative day with many multiple losers. Leading the way on the downside was Chipotle Mexican Grill, Inc. (CMG) down 7.71 to 244.19. Amazon.com Inc. (AMZN) lost 3.74 to 176.68, but Apple Inc. (AAPL) jumped 4.01 to 342.62.

Other losses of note included InterDigital, Inc. (IDCC) down 2.68 to 53.14, IDT Corporation (IDT) 1.28 to 23.90, and Lululemon Athletica Inc. (LULU) 1.85 to 77.27. OmniVision Technologies Inc. (OVTI) got hammered, down 2.61 to 22.87, and SodaStream International Ltd. (SODA) lost 2.39 to 39.50, closing under 40 for the first time in awhile.

In addition, other losses of note, Travelzoo Inc. (TZOO) was down 2.51 to 37.70, Stratasys Inc. (SSYS) 1.50 to 43.01, Spreadtrum Communications Inc. (SPRD) 1.43 to 19.61, Whole Foods Market, Inc. (WFMI) 1.18 to 57.06, and SuccessFactors, Inc. (SFSF) 1.30 to 34.08.

On the upside, in addition to Apple, Molycorp, Inc. (MCP) jumped 1.27 to 46.84, Exelixis, Inc. (EXEL) 97 cents to 11.52, and Endologix Inc. (ELGX) 58 cents to 6.08.

Several junior oils had a big day today. Pyramid Oil Company (PDO) advanced 1.56 to 7.47, and Royale Energy Inc. (ROYL) 1.47 to 3.57, a 70% gain there. Brigham Exploration Co. (BEXP) gained 1.70 to 33.86, and Blue Dolphin Energy Company (BDCO) 3.02 to 6.76, another huge percentage gain at nearly 81%. Many of the junior oils, particularly the thin ones, were running today.

In addition, the iPath S&P 500 VIX Short-Term Futures ETN (VXX) jrose 1.46 to 34.01, and Direxion Daily Small Cap Bear 3X Shares (TZA) 67 cents to 14.18.

Stepping back and reviewing the stock market, the indices were down in the morning, reached their lows by midday, bounced in the afternoon, and then rolled over in the last hour, but still ended across the board negative today.

It was a very distinct follow-up day to yesterday's big down day. It appears that the back of the trend has finally been broken. We'll have to examine the rally to see what we can expect going forward.

Good Trading!

Harry

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