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
VR and Gaming Becomes the Metaverse - 7th Dec 21
How to Read Your Smart Meter - Economy 7, Day and Night Rate Readings SMETS2 EDF - 7th Dec 21
For Profit or for Loss: 4 Tips for Selling ASX Shares - 7th Dec 21
INTEL Bargain Teck Stocks Trading at 15.5% Discount Sale - 7th Dec 21
US Bonds Yield Curve is not currently an inflationist’s friend - 7th Dec 21
Omicron COVID Variant-Possible Strong Stock Market INDU & TRAN Rally - 7th Dec 21
The New Tech That Could Take Tesla To $2 Trillion - 7th Dec 21
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Indices Spike Down into Close

Stock-Markets / Stock Markets 2010 Aug 31, 2010 - 04:13 AM GMT

By: Harry_Boxer


Best Financial Markets Analysis ArticleThe stock market indices suffered a down day to start the week, but did start with a little strength early on in the Nasdaq 100, when it retested that 1799-1800 zone unsuccessfully. The S&P 500 got up to 1064 and change and then began a slide that lasted the entire the session in stair-step fashion, which was fairly orderly until the last 15-20 minutes when it spiked down, leaving the SPX at the session lows.

Net on the day, the Dow was down 140.92 to close at 10,009.73, the S&P 500 15.67 to 10,048.92, and the NAsdaq down 19.57 at 1772.07.

Advance-declines were about 3 1/2 to 1 negative on New York and about 4 to 1 negative on Nasdaq. Up/down volume was 13 to 1 negative on New York on total volume of a very light 860 million, probably the lightest volume of the year. Nasdaq volume was just under 1.6 billion, but the ratio was 5 1/2 to 1 negative on down volume over up volume.

Charts of the Day:

Today we're going to go over some of the Boxer Shorts in more detail, particularly with today's ugly session and the extremely negative close.

Conceptus, Inc. (CPTS), forming a coiling-type pattern with poor technicals, has moved back up to the 14 level from 12 recently, and is currently in a declining tops declining channel mode. Drawing a line across the tops you'll see the angle of descent, but the stock may have difficulty getting through this level and rollover. If that is the case, the target is 11.

Global Payments Inc. (GPN), in a very negative declining channel for the last 7 or 8 months, is currently in a wedge formation right beneath the declining topslines and moving average. A break here should get it down into the 33 zone at the bottom of the channel and then beyond.

J. Crew Group, Inc. (JCG), another retailer that's looking ugly, broke on Friday and followed through with another 78-cent loss today. Looks like it's headed for 27 1/2-3/4 where there's a major support level, and beyond that potentially down around 22, my intermediate target.

Visa, Inc. (V), which came down very hard in April and May, bounced in June, and then narrowed to form a descending wedge, is sitting right on top of key support that if broken could lead to a very sharp, quick decline from just under 70 to down near 61-62. Beneath that something in the high 50s may be doable.

Reviewing our Watchboard:

As a result, board was mostly negative. Google (GOOG) dropped 6.14 to 452.69, Goldman Sachs (GS) 2.74 to 136.66, Amazon (AMZN) 2.85 to 123.79, and OmniVision (OVTI( 1.38 to 21.88.

Those were the point-plus losers on our board other than the Direxion Daily Financial Bull 3X Shares (FAS), which gave back 1.04 to 17.60.

Other stocks of note on the downside, RINO International (RINO) lost 87 cents to 15.16, Trina Solar (TSL) 73 cents to 24.77, Valassis Communications Inc. 71 cents to 29.95, Westport Innovations (WPRT) 59 cents to 16.27, Isilon Systems (ISLN) 81 cents to 19.16, China Green Agriculture 60 cents to 10.05, China Automotive (CAAS) 49 cents to 14.28, and ADTRAN Inc. 55 cents to 31.09.

As you can see, many Chinese stocks had a difficult session.

On the upside, the Direxion Daily Small Cap Bear 3X Shares (TZA) gained 2.36 to 38.30, the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) 1.76 to 38.98, the Direxion Daily Financial Bear 3X Shares (FAZ) 89 cents to 17.05, the Direxion Daily Large Cap Bear 3X Shares (BGZ) 70 cents to 16.45, and iPath S&P 500 VIX Short-Term Futures ETN (VXX) 68 cents to 22.18.

Among stocks, Apple (AAPL) managed to gain 88 cents to 242.50, and L & L Energy, Inc. 50 cents to 9.02. Transocean Ltd. advanced 31 cents to 52.34.

Stepping back and reviewing the hourly chart pattern, the indices were up slightly near the opening on the NDX, but the SPX failed to follow through on the new rally high and they backed off steadily in stair-step fashion only to spike into the close and end at the lows for the day going away.

It was a very bad day for the indices to start the week. Today's highs were right on the declining tops lines on the major down channel, and that does not augur well for prices going forward. It looks like we may at least test the lows if not take them out and reach lower levels shortly.

Good Trading!


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 . 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

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 - 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