Morning Update: 11/20/2012

Monster Day, Great Technicals

Net on the day, the Dow was up 207.34 at 12,795.65. The S&P 500 was up 26.99 at 1386.27. The Nasdaq 100 closed up 61.67 at 2595.83, just a point off the high.

Advance-declines were 8 to 1 positive, with 2700 up and 359 down on the New York Stock Exchange, and 4 to 1 positive on Nasdaq. Up/down volume was 15 to 1 positive on New York, with total volume of 678 million shares. Nasdaq traded over 1.7 billion and had a 7 to 1 positive volume ratio.

It was a monster day on Wall Street as the stock market indices gapped up, and just kept running all day in stair-step fashion, including a late spurt into the close to leave the S&P 500 at the session highs going away into the bell, up nearly 27 points.

It was quite a big day for Wall Street and an important technical day as the key declining topsline and moving averages were broken and closed above, with the NDX and S&P 500 near the highs for the day going away.

It was a spectacular session to start the week and an important day technical.

We’ll see how it goes on tomorrow.

Averages

 

Leaders

 

Institutional

Morning Update: 11/12/2012

Tainted Rally With Weak Afternoon Action

The stock market indices had an interesting but volatile day today, coming off oversold oscillator readings. The indices bounced from the get-go and retested. When they held, the indices took off in a strong rally, which peaked out just before noon, with the NDX having jumped from 2572 to 2610, a 38-point jump. The S&P 500, at that point, jumped from 1373 to early 1392, about 19 points. So that was a nice, strong rally, but they sold off very quickly and gave back a .618 Fibonacci retracement by early afternoon. They then snapped back and then did another .618 Fibonacci retracement to test the declining topsline, but rolled over again. Although they did bounce a few minutes before the close, in the last 10 minutes they sold off again to the afternoon low and near support to close only very modestly higher.

Net on the day, the Dow was up 4.07 at 12,815.39, 75 points off the high and about the same amount off the low. The S&P 500 was up 2.34 at 1379.84, 12 points off its high and 6 points off its low. The Nasdaq 100 was up 11.53 at 2584.10, about 26 points off its high and 13 points off its low.

So it was a kind of mixed, sloppy, volatile day, and the indices managed to eke out a gain, although technical were flat to slightly lower

Advance-declines were 15 to 14 negative on the New YorkStock Exchange, and only 23 issues higher on Nasdaq. Up/down volume was a tad higher on New York and Nasdaq had a little lower volume ratio.

Basically, it was a net-net flat session with the technicals across the board, and today was not the best rally indeed.

On the downside, there were no stocks down as much as a point today, other than Amazon, which we mentioned above.

So it was not that bad from a loss standpoint, but it was a tainted rally with weak afternoon action.

We’ll see how it goes on Monday.

 

Morning Update: 11/9/2012

Very Nasty Day on Wall Street

 

The stock market indices had a very rough session. Futures were up before the opening, and the indices did firm a few minutes into the opening, but then rolled over and were down steadily and sharply all session in 45-degree-angle, declining channels. At the end of the day, the indices rolled over after a late-afternoon rally attempt and consolidation failed. They then rolled over hard, especially the S&P 500, into the close, which dropped 5 points in the last 5 minutes.

Net on the day, the Dow was down 121.41 at 12,811.32. The S&P 500 was down 17.02 at 1377.51, at the exact low for the day and 24 points off its high. The Nasdaq 100 closed down 40.12 to 2572.57, just a few cents off its low.

It was another nasty day on Wall Street, following up with yesterday’s post-election decline.

Advance-declines were 22 to 8 negative on the New YorkStock Exchange, and 3 to 1 negative on Nasdaq. Up/down volume was 5 to 1 negative on New York, with total volume of 745 million shares. Nasdaq traded over 1.4 billion and had a 7 to 2 negative volume ratio

Stepping back and reviewing the hourly chart patterns, the indices were up for a brief period in the morning, rolled over in a beautiful, parallel, down channel all session on both indices, only to be interrupted a couple times by rally attempts, which failed at declining moving averages and overhead resistance. Simply, we’ve come down hard and fast and is now on the Nasdaq 100 near the bottom of a major declining channel and getting oversold.

I’m not sure if we’re oversold yet, but another day or two of this, and we’ll be out of power. Expect some kind of rally. We are at a cycle low at this point, projected to be Nov 9, which is tomorrow.

We’ll see how it goes.

 

Morning Update: 11/8/2012

Very Negative Post-Election Session

The stock market indices got creamed today following the elections last night. They had big gaps down at the opening, and very, very sharp sell-offs into late morning when they reached their session lows just above 2600 on the NDX and near 1388 on the S&P 500. That breakdown, below 1403 S&P 500, was a key break that could lead to much lower levels . We are very concerned. They did rally back in stair-step fashion in a 5-wave rally that took the NDX from 2602 to 2629. The S&P 500 at that point had rallied from the morning lows at around 1388 to 1403 roughly. In the last half hour they rolled over hard into the close and closed with massive losses.

Net on the day, the Dow was down 312.95 at 12,932.73, about 50 points off the low. The S&P 500 was down 33.86 at 1394.53, a definitive breakdown today. That was about 6 points off its low. The Nasdaq 100 was down 68.36 to 2612.69, a 2 1/2-3% loss today, and about 10 points off its low.

Advance-declines were nearly 5 to 1 negative on theNew York Stock Exchange, and nearly 6 to 1 negative on Nasdaq. Up/down volume was 11 to 1 negative on New York, with total volume of 870 million shares. Nasdaq traded over 2 billion and had an 8 to 1 negative volume ratio.

It was a very, very negative day today.

Stepping back and reviewing the hourly chart patterns, the indices were sharply lower in the morning, and came back in a 5-wave retracement in the afternoon, but rolled over into the close for a very negative session.

We’ll see what happens in the days to come.

Morning Update: 11/7/2012

Solidly in Plus Column … But Key Overhead Resistance Ahead

The stock market indices had a tremendous rally late morning that, despite the afternoon pullback, put them solidly in the plus column today.

The day started out with some backing and filling action. Actually there was an early dip on the Nasdaq 100, but the S&P 500 held up very well. Late morning when they broke through the 1424 area on the S&P 500, the S&P 500 and NDX both surged sharply, rallying in a spike-up mode, taking the NDX all the way up to 2696.46 and the S&P 500 to 1433.38. They then pulled back rather dramatically, especially on the Nasdaq 100, giving back about 20 quick points, and about 7 points on the S&P 500. They did manage to firm up a little bit into the close.

Net on the day, the Dow was up 133.24 at 13,245.68, 45 points off the high. The S&P 500 was up 11.13 at 1428.39, 5 points off its high but still a good gain. The Nasdaq 100 closed up 8.14 to 2681.05, about 15 points off its high, so basically, the NDX did not perform today.

Advance-declines were 21 to 9 positive on the New York Stock Exchange, and 2 to 1 positive on Nasdaq. Up/down volume was nearly 5 to 1 positive on New York, with total volume of 654 million shares. Nasdaq traded just under 1 3/4 billion and had a 3 to 2 positive volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices went back and forth in the morning forming wedges, then broke out late morning, spiked up right around noon to reach the session highs, and then pulled back in the afternoon rather dramatically, only to bounce into the close to preserve some of the gains.

It was a nice day, indeed, but still, we remain below key-overhead resistance levels now at 2702 on the NDX and around the 1333-4 level on the S&P 500.

Let’s see what happens after today’s election.