Closing Technical Market Comments for Tue May 29, 2007
Intraday Pattern of Indecision in Volatile Up-Session
By Harry Boxer, TheTechTrader.com (www.thetechtrader.com)
We had three distinct parts of the session: up in the morning, down mid-day and back up in the afternoon. They closed to the plus side to start the shortened week.
The market got a move up right at the get-go that took the indices to near the session highs within the first hour. They rolled over mid-morning, bounced around lunch hour and then in the afternoon dropped sharply but held secondary support and near the 3-day rising trendlines, and after a three-wave mid-session decline recovered nicely, particularly in the last hour and a half, and closed up on the day, as indicated.
The Dow as up just 14, the S&P 500 up 2.38, and the NDX up 10 ½. The Philadelphia Semiconductor Index (SOXX) was up 2 ½.
The technicals were solid, positive by 5 to 3 on advance-declines on New York and a similar amount on Nasdaq. Up/down volume was about 4 to 3 positive on New York on light total volume of a little less than 1.4 billion. Nasdaq traded a little more than 1.6 billion, and had a better than 2 to 1 positive ratio on advancing volume over declining volume.
TheTechTrader.com board was mostly higher, with a couple outstanding issues. Global Solutions (GSOL), one of our old favorites, jumped to a new 6-year high, closing at 21.29, up 2.42 on nearly 2/3 million. Old favorite Force Protection (FRPT) jumped another 1.08 on 1.2 million, closing at 29.48.
Those were the only point-plus gainers on my board. The point-plus losers included Jones Soda (JSDA), which was mentioned negatively in Barron’s, down 1.86, and Metabolix (MBLX), one of our portfolio positions that broke support & got stopped out today at 22 ½, closed at 21.93, down 2.14 on more than 1 million shares. Cypress Biosciences (CYPB) gave back another 1.16 from recent gains on 3 1/3 million.
Among the fractional gainers, Color Kinetics (CLRK) was up 59 cents, DXP Enterprises (DXPE) 56 cents, portfolio position GigaMedia (GIGM) up 77 cents, ISDA 80 cents, MEDTOX Scientific (MTOX) 69 cents, and TRCR up 63 cents. Vasco Data (VDSI) also advanced 45 cents.
Fractional losers also included Chindex (CHDX) down 65 cents, and NVE Corp. (NVEC) down 46 cents.
Stepping back and reviewing the hourly chart patterns, the indices got up to short-term resistance and backed off, but met support and held there before rallying late in the day. So it was a pattern of indecision today.
We’ll be watching key short-term overhead resistance near the 1904-05 range and 1522 area on the S&P levels tomorrow morning, along with support near the lows today at around 1512 S&P and 1885-86 on the NDX.
Good trading!
Harry
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