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.