Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022
Quantum AI Tech Stocks Portfolio Current State - 4th Jan 2022
The Alibaba Stock Market - 4th Jan 2022
Will Gold & Silver Be Investment Outcasts in 2022 Again? - 4th Jan 2022
Stock Market Happy 2022 Entry - 4th Jan 2022
Complete paradigm shift will make Gold the generational trade - 4th Jan 2022
Corsair MP600 NVME2 1tb Drive Sudden DEATH Failures - Back Up NOW! - 4th Jan 2022
AI Tech Stocks Portfolio Updated Buying Levels and Zones Part 2 of 2 - 3rd Jan 2022
Stock Market Sentiment Speaks: 2022 Can Be Your Best Year Ever - 3rd Jan 2022
2020-22 - Soaring costs of the West's Pandemic failure - 3rd Jan 2022
AUTODESK (ADSK) - CAD - Metaverse Stock Analysis Investing for 2022 and Beyond - 2nd Jan 2022
Stock Market Sector Themes In Play For 2022 - 2nd Jan 2022
Excuse Me Mr Gold. What Year Is It? - 2nd Jan 2022
Stock Market Early 2022 Should Continue Melt-Up Trend In January / February - 2nd Jan 2022
UK Energy Crisis WARNING 2022 - How to Avoid Huge Increase in Gas and Electric Fuel Bills Right Now! - 1st Jan 2022
Why You Need A PR Expert For Your Financial Startup - 1st Jan 2022
TENCENT- Chinese High Risk GAMING Metaverse Stock Analysus for Investing 2022 and Beyond - 31st Dec 21
Gold Price Forecast 2022 - The Golden Year - 31st Dec 21
Will 2022 Be Better for Gold Than 2021? - 31st Dec 21
Gold Stocks – Wishing And Hoping (And Losing) - 31st Dec 21
Sheffield Christmas Market 2021 SANTAS GROTTO at Peace Gardens, City Centre Sights and Sounds - 31st Dec 21
Nvidia Leaves planet Earth - AI Tech Stocks Analysis - 30th Dec 21
Google (Alphabet) AI Tech Stocks Analysis - 30th Dec 21
Stock Market Santa Rally Challenge - 30th Dec 21
Sheffield Christmas Market Stalls, Sights and Sounds 2021 - 30th Dec 21
Investment Roadmap for 2022 - 30th Dec 21
2022 – The Year of (Gold) Inflation? - 30th Dec 21
Overvalued Stocks and Housing Perfect Storm for Gold - 30th Dec 21
My Most surprising Crypto call to date - 30th Dec 21
What is a Rehab Clinic and How It Is Beneficial for People? - 30th Dec 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market New Pullback Lows

Stock-Markets / Stock Markets 2010 Jul 01, 2010 - 03:09 AM GMT

By: Harry_Boxer

Stock-Markets

Best Financial Markets Analysis ArticleThe stock market indices started out the day with a strong surge, pulled back in an orderly fashion, and then made new highs by late morning. At that point they backed off and began a stair-step process over the next several hours only to accelerate and cascade lower in the last hour, sending the indices tumbling.


The last hour was particularly negative as the indices took out the afternoon lows and then took out yesterday's late spike lows to new pullback lows for the entire decline. At this point, the S&P 500 has dropped from 1131 down to 1028, more than 100 points, while the Nasdaq 100 has dropped from 1940 down to under 1740, more than 200 points.

Indeed, getting oversold short-term here, as the indices also have reached the bottom of their declining channels.

Net on the day, the Dow was down 96.28 for the day at 9774.02, which was about 134 points off its high. The S&P 500 was down 10.53 at 1030.71, 18 points off its high, and the Nasdaq 100 down 24.92 at 1739.14, 37 points off its high.

Advance/declines on the New York Stock Exchange were 19 to 11 negative, and about 3 to 2 negative on Nasdaq.

Charts of the Day:

Continuing to review stocks on the short side, Central European Distribution Corp. (CEDC) actually was up a few cents today. The overall pattern shows that the plunge in April and May, followed by the consolidation in May and June, led to the recent pullback and takeout of support. The bottom of the channel now looks like this stock could be in the mid-teens at some point.

CONSOL Energy Inc. (CNX) also broke out of a bear flag to the downside. It was unable to rally today, down another 60 cents, and is in a free fall after finding resistance at the declining topsline and moving average. A move down to the 29 range could be forthcoming, as the channel bottom and lateral price support are around that zone.

Universal Corporation (UVV), after cracking hard in May, has been going sideways in a bear wedge, and any movement that breaks this pattern could result in a move down toward the low 30s, my next trading target.

Walter Energy Inc. (WLT) had a massive head-and-shoulders top similar to the indices we're looking at. It had a breakaway gap to the downside Tuesday, with a follow-through today, down another 1.67. Short-term trading target is around 50, support at the lowest lows of last year.

Reviewing our Watchboard:

TheTechTrader.com board was mostly lower, but there were some outstanding stocks on the upside today. Leading the way to the downside, Google Inc. (GOOG) dropped another 9.31 at 444.95, Apple Inc. (AAPL) 4.64 at 251.53, and Netflix, Inc. (NFLX) 3.93 at 108.65. Goldman Sachs (GS) reached a new 52-week low, down 2.49 at 131.27, and Dendreon Corp. (DNDN) lost another 1.26 at 32.33.

Those were the point-plus losers on the board.

On the plus side, the ultra-short ETFs had an excellent day with the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) jumping from 46.80 to 50.27 before settling back to 49.80, up 1.08 today, but a big reversal there. The Direxion Daily Large Cap Bear 3X Shares (BGZ) closed up 57 cents at 18.25, the Direxion Daily Financial Bear 3X Shares (FAZ) 60 cents at 17.42, and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) 41 cents at 31.20, about 1.75 off its low.

Other gainers of note, portfolio position Westport Innovations Inc. (WPRT) gained 29 cents at 15.69, although that was about 65 cents off its high. RINO International Corporation (RINO) jumped 28 cents at 12.51, portfolio position Pactiv Corp. (PTV) up 20 cents at 27.85, and FSI International Inc. (FSII) managed to gain 11 cents at 4.19.

One of the sole large-cap high tech stocks that was up today was Amazon.com Inc. (AMZN), which added 65 cents at 109.26.

Stepping back and reviewing the hourly chart patterns, the indices had a 3-wave rally back to the declining tops lines on the 5-minute charts only to rollover in a steady fashion in early afternoon and accelerate in the last hour to close near the session lows. Very negative day for the bulls, but a very strong session for the ultra-shorts and the bears.

We'll see what additional follow-through we get to the downside. The indices are starting to get a little, as they say, long on the tooth on the downside with a negative tick of -1283 at one point today. It may have seen some sort of capitulation short-term low, but we'll see what we get tomorrow.

Good Trading!

Harry

For more of Harry Boxer, sign up for a FREE 15-Day Trial to his Real-Time Technical Trading Diary. Or sign up for a Free 30-Day Trial to his Top Charts of the Week service.

(c) 2010 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at info@advicetrade.com . In using any portion of Harry Boxer's content, you agree to the terms and conditions governing the use of the service as described in our disclaimer at http://www.thetechtrader.com

Mr. Boxer's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Harry Boxer Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in