Harry's Closing Boxer Brief
Daily Technical Market Analysis
Mon Jun 6th 2005
Ready to Roll Over?
By Harry Boxer, The Technical Trader (www.thetechtrader.com)
The indices ended up very close to flat on the session, but did have a couple swings intraday. They opened mixed & went down for most of the morning. At around 11 o'clock they hit their lows for the session and started a three hour snapback that brought them back up towards the morning highs. The S&P in the last hour surged nominally through minor resistance at 1198, but the NDX trailed miserably at that point & failed to confirm and in the last 15 minutes they backed off.
Net on the day, the Dow was up a narrow 6 points, the S&P 1 1/2 points, and the Nasdaq 100 up just .79. The SOX index was down 2 points and pressured Nasdaq all day.
Advance-declines on New York were about 3 to 2 positive, although up/down volume was only 6 to 5 positive, and total volume was light at 1.15 billion. On Nasdaq, on the other hand, advance-declines were ahead by only 130 issues, and up/down volume was slightly negative. Volume was just 1.44 billion.
TheTechTrader.com board was very active and had some big winners today. Former Chart of the Week Forward Industries (FORD) closed at 23, up 2.87 on 3.1 million shares, closing at the session & all-time high.
Dynamic Materials (BOOM) on news of a dividend declaration and stocks purchases was up another 2.23 today on 2.6 million. JAMDAT Mobile (JMDT) gave back some of its early gains to close at 29, still up 1.25 today.
Other stocks of note, aQuantive (AQNT), another former Chart of the Week, was up 56 cents. CryptoLogic (CRYP), a current watch board position, was up 68 cents, setting a new 5-year high earlier in the session at 36.81.
On the downside, Broadcom (BRCM) was off 54 cents, Intel (INTC) 16 cents, and that helped the SOX index go lower today and took the SMH down 14 cents.
Other losers of note, Cree (CREE) backed off 94 cents and Escalon Medical (ESMC) lost 23 cents. But for the most part, most stocks were up on our board.
Stepping back and reviewing the overall patterns, today's early downside action tested critical short-term support at 1540 NDX and the 1190-92 zone on the S&P. Although they did rally, they failed to get back up through the 21 and 40 day moving averages, which are crossing over on my hourly charts. Unless we can get back up through that quickly, it looks like they may roll over, take out support and head down for a few days. Stay tuned!
Good trading!
Harry
