Closing Technical Market Comments for Mon Apr 14, 2008
Downtrend Continues
By Harry Boxer, The Technical Trader (www.thetechtrader.com)
The stock market indices started the week with a moderately to slightly lower session.
The day began with a move down. The indices vacillated back and forth, then tried a rally that went to nominal new highs in the morning on the Nasdaq 100, but the S&P 500 did not confirm. They rolled over, retested the lows, actually took them out on the S&P 500 but failed to confirm on the Nasdaq 100, and then had the best rally of the day around mid day, taking the indices to new session highs. They couldn’t extend them past secondary resistance and then they rolled over in a three-wave decline before a late bounce brought them off the lows slightly.
On the day the Dow was down 23 1/3, the S&P 500 4 1/2, and the Nasdaq 100 7 3/4. The Philadelphia Semiconductor Index (SOXX) was down almost 2 percent, down 6.14, and that put pressure on Nasdaq today.
Advance-declines were 3 to 2 negative on New York and a similar amount on Nasdaq. Up/down volume was 7 to 4 negative on New York and about 2 to 1 negative on Nasdaq. Total volume was lighter today, 1.14 billion on New York and about 1 1/2 billion on Nasdaq.
TheTechTrader.com board was mixed but mostly higher, with several point-plus gainers. Leading the way was the junior solar group, in particular JA Solar (JASO), which was up 2.01 at 23.32 and Canadian Solar (CSIQ) , one of our favorites, up 1.56 to 25.64.
Chart of the Week AgFeed Industries (FEED) jumped another 1.11, closing at 15.56, and low-priced Pluristem (PSTI) on further positive drug news jumped 1.25, closing at 4.80, a strong percentage gain there.
Chart of the Week Northern Oil & Gas (NOG) closed at 9.91, up 89 cents on more than 1 million, and FuelTek (FTEK) gained 66 cents. Also ahead was up DryShips (DRYS), up 1.70.
Chindex (CHDX) jumped 45 cents, and Chart of the Week GeoResources (GEOI) was up 29 cents, just missing equaling its 2005 all-time highs.
On the downside, point-plus losers included DCR, which got hammered 1.29, as oil closed above $111. Aluminum Corp. of China (ACH) lost 1.56.
Jinpan International (JST) fell 97 cents, Washington Mutual (WM) 60 cents, Yucheng Technologies (YTEC) 62 cents, and InterMune (ITMN) 64 cents. Ascent Solar (ASTI) was weak in the solar energy sector, down 53 cetns.
Stepping back and reviewing the hourly chart patterns, the indices did nothing to change the trend today, attempting a stronger rally at mid-day that failed and then retesting the lows on 2-3 occasions but holding them, although not closing far off them, and the downtrend continued today.
We're coming into what looks like some cycle lows mid-week, so we could be setting up for a snapback rally starting over the next day or two.
Good trading!
Harry
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