Closing Technical Market Comments for Mon Nov 20, 2006
Indices Bend but Don’t Break
By Harry Boxer, TheTechTrader.com (www.thetechtrader.com)
The indices ended mixed, with the Philadelphia Semiconductor Index (SOXX) up 8.47 today, keeping Nasdaq above water. However, the rest of the indices were pretty much lower on the session.
The day was rather choppy with an immediate move down at the opening holding support, and then a sharp rally ensued to test the highs. They backed off and consolidated for a few hours at that point, and in mid-afternoon tried to rally. The NDX did make a new rally high, reaching as high as just under 1809, but the S&P 500 did not confirm, unable to match the new rally highs. Then they rolled over rather sharply, but held trendline support and then bounced over the last hour or so, putting the Nasdaq back in plus territory.
Net on the day the Dow was down 26, the S&P 500 was down 0.7, the Nasdaq 100 up 3.14, and the Philadelphia Semiconductor Index (SOXX) up 8.47, more than 1 ½ percent.
Technicals were flat on the NYSE with advance-declines only positive by 47 issues, and negative by 3 issues on Nasdaq. Up/down volume was the story on Nasdaq, with about a 2 to 1 positive ratio on, Total volume on Nasdaq was 1.7 billion. New York had about a 7 to 6 negative ratio on total volume of just under 1.5 billion.
TheTechTrader.com board was mixed, but mostly higher. There were some outstanding issues today. E-Future Information (EFUT) in the last hour exploded, running from 33.60 to 41.37, closing at 41.30, up 7.50 on more than 2.1 million.
Home Inns & Hotels (HMIN), one of our Charts of the Week this week, was up 3.31 to 34.08. Rediff.com India (REDF) went to a new 6-month high, up 1.67, closing over 19. U.S. Global Investors (GROW) surged again today to new all-time highs, up another 3.60 on a little less than 1 million shares. Acorda Therapeutics (ACOR), a former Chart of the Week, was up 1.81 on 4 ½ million shares today, reaching a new all-time high. Cardica (CRDC), after announcing FDA approval for one of their productsl, jumped to as high 9.62 before selling back to 7, still up 1.75 but way off its earlier highs, on 5 ½ million shares.
Other stocks of note, China GrenTech (GRRF), also a Chart of the Week this week, was up 64 cents. Jinpan International (JST), another chart of the Week, was up 60 cents. And Services Acquisition Corp. (SVI), on announcement of approval of a merger with Jamba Juice and moving over to Nasdaq with a symbol change, was up 43 cents.
On the downside, loss leaders were Chindex (CHDX), which gave back 1.35 and CROX down 1.21, along with Gmarket (GMKT) 1.16, NVE Corp. (NVEC) 59 cents, Inphonic (INPC) 42 cents, Pacific Ethanol (PEIX) 37 cents, and Energy Conversion Devices (ENER) 58 cents.
Stepping back and reviewing the hourly chart patterns, the indices bent but did not break, and have so far held support on several occasions over the last 4 days in a rising consolidation that also held its moving average support on the hourly charts. Key areas to watch over the next day or two would be support around NDX 1788-90 zone, and S&P support around 1395.
Good trading!
Harry
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