Closing Technical Market Comments for Mon Mar 19, 2007
Indices Break Out of Consolidation
By Harry Boxer, TheTechTrader.com (www.thetechtrader.com)
The indices had a very strong start to the week, breaking out of the consolidation we had on Thursday and Friday. The day started out with a gap up at the get-go. They pulled back almost immediately, but held reasonably well, and then had a very strong surge to the upside to new rally highs on both indices. In fact, the NDX took out the highs from early March; however, the S&P did not confirm that.
The indices then reached their peaks late morning,, pulled back into lunch hour, tried to rally early in the afternoon, but did so in a corrective-looking manner, and then had another leg lower on the Nasdaq 100, taking out immediate short-term support but holding on the S&P. In fact, the S&P held in a nice multi-hour flag pattern for the rest of the session and consolidated its gains bullishly.
Net on the day the Dow was up 115.7, the S&P more than 15, and the Nasdaq 100 more than 16. The Philadelphia Semiconductor Index (SOXX), however, was down 2.81, and the NDX obviously would have had a much bigger gain today if the semiconductors were stronger.
The technicals were very solid by 3 to 1 positive on advance-declines on New York, 2 to 1 on Nasdaq. Up/down volume was 6 to 1 positive on New York, but only 5 to 3 on Nasdaq. Much narrower gains today on the OTC. Total volume, however, was lighter, with only 1.45 billion traded on New York and about 1 2/3 billion on Nasdaq.
TheTechTrader.com board, however, was mostly higher and had some superior gains today. Acadia Pharmaceuticals (ACAD), a stock we traded a couple times today, gapped up and ran hard, up 6.92 on 21.6 million, on positive drug news.
Rochester Medical (ROCM), a stock we highlighted a few weeks ago, was up 2.24 to a new all-time, closing at 20.54 on 1.1 million. SIGM jumped 1.14 today, closing at 28.85 on more than 1 million shares, ahead of earnings later in the week.
Chart of the Week Jones Soda (JSDA) jumped over 20, closing at 20.02, up 1.17 on 4.1 million.
DXP Enterprises (DXPE), also a Chart of the Week, was up 1.46 today.
Acordia Pharmaceuticals (ACOR), one of our old favorites, was up 1.49 to 18.92
Boxer Shorts had a difficult story today & were under upside pressure, as Continental Airlines (CAL) gained 1.45, Bear Stearns (BSC) 1.64, and Lehman Brothers (LEH) 1.11.
Other stocks of note, Force Protection (FRPT), on excellent earnings, was up 98 cents on 3.2 million, closing at 16.94. ENER gained 88 cents on 1 million shares to 33.92.
On the downside, the loss leader was Accredited Home Lenders (LEND), which had a tremendous snap back advance last week. It gave back another 1.95 and is now about 5 points off last week’s rally high.
Most other losses on our board were just small fractions except for Cleveland Biolabs (CBLI), which was down 1.37 today, a big percentage loss.
Stepping back and reviewing the hourly chart patterns, the uptrend off the low of mid-week continued today, and they had a significant advance. However, the S&P 500 is still beneath its declining tops line going back three weeks. Key overhead resistance now exists at the 1410-15 zone on the S&P 500,& must be taken out in order to confirm the minor breakout we had today on the Nasdaq 100. However, additional overhead resistance on my hourly charts exists at about NDX 1765. Today’s high was 1764.37, so we came right up to it and backed away. We’ll see if they can break through that level and get a confirm from the S&P 500 over the next day or two.
Good trading!
Harry
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