Closing Technical Market Comments for Mon May 21, 2007
Indices End Mixed, as S&P 500 Fails to Remain Above All-Time Closing High
By Harry Boxer, TheTechTrader.com (www.thetechtrader.com)
The indices had a mixed session at the close with the S&P 500 tantalizing investors by moving above its all-time closing high, but not able to hold that. An afternoon sell-off brought it back down and it failed to close above that mark.
The day started out with a firm opening, then a strong rally in the morning, particularly on the Nasdaq 100, which reached near 1920, the highest level in six years. The S&P came within a small fraction of 1530, which was 3 points above the closing high, although more than 22 points from its all-time intraday high at 1552 set on March 19, 2000.
In any case, after consolidating mid-afternoon, the indices rolled over sharply and only a late bounce prevented them from closing at the afternoon lows.
Net on the day the Dow was down 13.65, which was about 44 points off its high. The S&P 500 was up 2.35, and the Nasdaq 100 advanced 14.23. The Philadelphia Semiconductor Index (SOXX) was down 0.85, about 7 points off its high.
The technicals managed to stay positive, with advance-declines positive by 3 to 2 New York and 2 to 1 on Nasdaq. Up/down volume was better than 3 to 2 positive on New York with a little under 1.5 billion traded. Nasdaq traded just over 1.9 billon shares, and had a 3 ˝ to 1 positive ratio.
TheTechTrader.com board was active, with some sharply higher issues today. Chart of the Week DXP Enterprises (DXPE) advanced 2.79, old favorite Chinese hotelier Home Inns & Hotels (HMIN) was up 2.53. Value Click (VCLK), continuing its strong advance of recent days on takeover rumors, was up 4.29 on more than 20 million. Chart of the Week Color Kinetics (CLRK) was up 1.45, recent favorite and Chart of the Week Force Protection (FRPT) up 1.52, and old favorite Global Solutions (GSOL) was up 2 in advance of tomorrow’s earnings report.
On the downside, there were no point-plus losers. Sigma Designs (SIGM) lost 51 cents, Research Frontiers (REFR) 43 cents, Jones Soda (JSDA) 56 cents, and ISDA 47 cents.
Stepping back and reviewing the hourly chart patterns, the indices spiked up in the morning, spiked down in the afternoon, bounced late in the session, and managed to close mixed on the session, short of the all-time highs on the S&P 500.
So we’ll see which way they want to take them tomorrow. Whether it will be turnaround Tuesday or follow-through Tuesday remains to be seen.
Good trading!
Harry
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