Harry's Closing Boxer Brief
Daily Technical Market Analysis
Mon Jul 11th 2005
A Show Of Resiliency
By Harry Boxer, The Technical Trader (www.thetechtrader.com)
The markets put on another remarkable showing today as a strong follow-up from Thursday and Friday’s rallies, giving us three strong sessions in a row.
The indices started out firm, pulled back into consolidation and then had a strong morning rally up to key resistance on the Nasdaq 100 and S&P 500. At that point, they had their biggest pullback in three days, but held support around 1540 on the NDX and 1215 on the S&P. For a couple hours, they bounced around before attempting a breakout, which had no follow-through, and a sharp pullback managed to hold late in the session, which resulted in a very strong snapback into the close, with the Nasdaq 100 and the S&P closing near the highs for the day.
At the end of the session the Dow was up 71, the S&P 500 up about 7 2/3 and the Nasdaq 100 up nearly 14 1/2. The SOX Semiconductor Index, up about 9, or nearly 2 percent, was strong all session and really helped Nasdaq and the NDX.
The technicals were very solid on advance-declines, by 23 to 9 1/2 on New York, and 21 to 9 on Nasdaq. Up/down volume was about 3 1/2 to 1 positive on New York, but total volume was lighter today with only about 1.25 billion traded. Nasdaq traded about 1.6 billion with a strong plurality of up/down volume of 5 1/1 to 1.
TheTechTrader.com board had many strong issues, led by Dynamic Materials (BOOM), up 4.11 on over 3 million shares. Alternative solar energy stock Daystar Technologies (DSTI) was up 3 1/2 on 6.4 million traded on news of a contract. Jamdat Mobile (JMDT) advanced a little more than 2 points on 1.5 million shares traded.
Other stocks of note: Forward Industries (FORD) was up 1.42, and Medicore (MDKI) soared 1.20, closing right at the key five-month resistance at 14. Parlux Fragrance (PARL), up $1.23, and Kendle International (KNDL), up 96 cents, were among the other strong gainers. The SMH was up 87 cents, and the QQQQ up 35 cents.
On the downside, there were some losers of note. CryptoLogic (CRYP) broke support and got hammered for 2.30, and WPT Enterprises (WPTE), on notice of insufficient information for the Friday tender offer, got slammed for 3.30 on more than 5 million shares. Catuity (CTTY), a strong gainer last week, gave back $1.62.
Reviewing the hourly patterns, the indices bent today but did not break and came on strong at the close, ending near key overhead resistance. The levels to watch tomorrow are around the 1548-50 zone on the Nasdaq 100, and the 1219-20 zone on the S&P.
Good trading!
Harry
