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
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Strong Three-Wave Rally Closes Stock Indices Near Session Highs

Stock-Markets / Stock Markets 2010 Jun 03, 2010 - 04:13 AM GMT

By: Harry_Boxer


Best Financial Markets Analysis ArticleThe stock market indices rocketed higher today after an early morning dip in a strong 3-wave rally. The indices had a superior turnaround session as earlier losses were wiped with a strong morning rally. They did get a midday pullback to test intraday support and then turned it around for the sharpest rally of the day in the last hour and a half. In the last 10--15 minutes they spiked up into the close and finished right near the session highs going away.

Net on the day, the Dow closed just under 10,250, up 225.52 at 10,249.54. The S&P 500 was up 27.67 at 1098.38, just pennies off its high, and the Nasdaq 100 had a very sharp gain of 44.55 at 1879.59, right at the high for the day going away.

Advance-declines were very positive today by about 5 1/2 to 1 positive on the New York Stock Exchange, and 4 to 1 positive on Nasdaq. Up/down volume was more than 20 to 1 positive with more than 1 1/4 billion to the upside and only 63 million to the downside. Nasdaq had 1.955 billion up, 214 million down with about a 9 to 1 positive ratio on total volume of just under 2.2 billion shares today.

Our Charts of the Day:

Akorn Inc. (AKRX) had a breakout in April from a base, followed by a little consolidation, a pop to secondary resistance, and then a consolidation for about 3-4 weeks. It's starting to edge out now above the trading range with a target right up around the 4.00 level coming up potentially.

Coinstar Inc. (CSTR), which broke out at the end of April, reached a new high in the 57 range, before the stock backed off. It is now coiling narrowly and quietly, but today surged 2.03. It may be breaking out of the apex of that coil at around 55. If it does, I'm looking for a move that could take it to the mid-60s, about another 10 points from where it is now. Corp. (LOCM) had a big day today, popping 84 cents, or 11%, with a breakaway gap that took out the 10-, 21- and 50-day moving averages in one fell swoop. There is overhead resistance, which it backed away from today, up around the 8.80-.85 area. A move through that zone could get this stock up around 9 1/2-10, the short-term trading target, but ultimately the top of the channel beckons around the 14 level.

Uroplasty Inc. (UPI), a portfolio position, jumped 13 cents, or 2 1/2%, today, but certainly appears to be coming out of the apex of the coil that it's in. Target on this is 7 1/4 - 7 1/2 short-term, a couple points from where it is at right now.

Reviewing our watchboard: board was nearly all green, with just a couple of small fractional losers today other than the ultra-shorts, of course. Leading the way, Google Inc. (GOOG) was up 11.00 at 493.37, Cree Inc. (CREE) 2.00 at 67.37, Baidu, Inc. (BIDU) 2.42 at 75.98, Apple Inc. (AAPL) 3.12 at 263.95, and Inc. (AMZN) 3.07 at 126.31.

In the generally strong junior oil group, Brigham Exploration Co. (BEXP) jumped 1.49 to 17.89, and Northern Oil and Gas, Inc. (NOG) was up 1.07 at 14.42.

Among other gainers of note, Acme Packet, Inc. (APKT) was up 98 cents at 28.58, China Automotive Systems Inc. (CAAS) 89 cents to 18.49, Dendreon Corp. (DNDN) 75 cents at 43.16, Las Vegas Sands Corp. (LVS) 1.23 to 24.25, NetApp, Inc. (NTAP) 1.33 at 38.95, Valassis Communications Inc. (VCI) 84 cents at 35.36, Xyratex Ltd. (XRTX) 64 cents at 15.71, and VIVUS Inc. (VVUS) 60 cents at 12.80.

In addition, RINO International Corporation (RINO) jumped 69 cents at 12.61, portfolio position L & L Energy, Inc. (LLEN) 47 cents at 9.12, Delcath Systems Inc. (DCTH) 41 cents at 15.95, Cirrus Logic Inc. (CRUS) 45 cents at 14.58, and China Agritech Inc. (CAGC) 55 cents at 12.30.

On the downside, the ultrashorts got hammered, with the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) down 5.52 to 47.68, the iPath S&P 500 VIX Short-Term Futures ETN (VXX) 1.32 to 28.87, the Direxion Daily Large Cap Bear 3X Shares (BGZ) 1.27 to 15.48, and the Direxion Daily Financial Bear 3X Shares (FAZ) 1.32 to 14.60.

Stepping back and reviewing the hourly chart patterns, the indices were down early, but then had a strong 3-wave rally that closed near the session highs going away and at the highest levels reached on this snapback by the Nasdaq 100, just underneath the 1880 level. The S&P 500 fell a little bit short of its recent highs, which were around 1103, closing at 1098.56, but nevertheless a strong session.

The 3-day declining channel was broken with authority late in the session to complete what looks like a narrow bullish head-and-shoulders bottoming type pattern on the S&P 500, in particular. Strong overhead resistance around the 1103 range will be closely monitored tomorrow to see if they can break out and extend, with further resistance up in the 1118-20 zone ahead of us.

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