Best Financial Markets Analysis Article The week started off with a thud as the stock market indices gapped down. They had a strong snapback early in the session on positive economic news, but that was it for the day. The indices then came down hard in a 5-wave decline, but at the end of the day when it looked like they were snapping back into the close, they suddenly reversed course in the last 10 minutes and got crushed into the close, finishing at the lows for the day.

It was a very nasty way to start the week.

Net on the day, the Dow was down 258.08 at 10,655.30, the S&P 500 down 32.19 at 1099.23, and the Nasdaq 100 down 54.14 at 2096.04.

Advance-declines were almost 10 to 1 negative with 291 up and nearly 2800 down on the New York Stock Exchange, and on Nasdaq they were about 10 to 1 negative with 239 up and 2383 down. Up/down volume on New York was about 30 to 1 negative, with 41 million up and 1.33 billion down, on total volume of 1.8 billion shares traded today. Nasdaq traded 2 billion shares, with 167 million up and 2.4 billion down, and had a 15 to 1 negative volume ratio.

Charts of the Day: Click below to view video.

Reviewing our Watchboard:

TheTechTrader.com board was entirely negative except for the ultra-shorts, of course. We traded the ultra-shorts long, and VelocityShares Daily 2x VIX ST ETN (TVIX) hit our intermediate target, exploding to over 100 today, up 11.47 to 100.90, reaching as high as 101.34. The Direxion Daily Small Cap Bear 3X Shares (TZA) was up 8.32 to 61.29, Direxion Daily Financial Bear 3X Shares (FAZ) 8.83 to 74.80, Direxion Daily Large Cap Bear 3X Shares (BGZ) 4.39 to 50.67, and iPath S&P 500 VIX Short-Term Futures ETN (VXX) 3.47 to 56.84.

On the downside, Apple Inc. (AAPL) lost 6.72 to 374.60, Universal Display Corp. (PANL) 6.30 to 41.64, SodaStream International Ltd. (SODA) 3.93 to 29.12, VirnetX Holding Corp (VHC) 2.61 to 12.38, Molycorp, Inc. (MCP) 2.75 to 30.12, Goldman Sachs (GS) 4.47 to 90.08, InterDigital, Inc. (IDCC) 2.03 to 44.45, and First Solar, Inc. (FSLR) 5.31 to 57.90. Those were among the many stocks down today.

It was quite a negative day on Wall Street. Climactic at that. We got a negative 1607 tick at one point, but the day closed very negatively and we're likely to open to the downside tomorrow.

Stepping back and reviewing the hourly chart patterns, the indices gapped down, pulled back sharply, failed at resistance, and rolled over. After forming wedges they rolled over sharply midday, bounced around near the end of the day, tried to rally back in the last 10 minutes, but rolled over in the last 10 minutes, closing at the low for the day.

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) 2010 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.