It was an up-day but a sloppy, thrustless day. The indices started out strong but then had a sharp pullback. The S&P 500 went to new pullback lows, but the NDX held at a much higher level and that triggered a late morning rally that took the NDX to new highs. The S&P failed to confirm at that point and the indices pulled back during lunch hour and into early afternoon, but then came on again and rallied to new NDX highs in the afternoon. The S&P also went to new highs, but late in the day the S&P secondary highs did not get confirmed by the NDX and they pulled back in the last hour.
Still, on the day the Dow was up 25 1/2, the S&P 500 up 3.14, and the NDX up 1.81. The Philadelphia Semiconductor Index (SOXX) was up 2.85.
The technicals were 3 to 2 positive on advance-declines on New York, but just positive by 33 issues on Nasdaq. Up/down volume was 3 to positive on New York with more than 1.5 billion traded. Nasdaq traded 1.85 billion, with a little better than 3 to 2 positive on up/down volume.
TheTechTrader.com board was mixed, mostly narrowly so. On the plus side, portfolio position Gmarket (GMKT) was up 1.22 to 22.55 on 1.87 million. Fuel Tech (FTEK) advanced 1.28 on 570,000.
Other gainers of note were, Telestone Technologies (TSTC) gained 99 cents on a contract announcement, and portfolio position VASCO Data Security (VDSI) advanced 87 cents on 1.7 million to new multi-year highs. Nuance Communications (NUAN) gained 33 cents, and Global Sources(GSOL) 69 cents.
On the downside, Syntax-Brillian (BRLC) gave back more than 1, but that was some 2 points off the earlier, so a big reversal day there on heavy volume (7 ¼ million). That was the only point-plus loser on our board.
Fuwei Films (FFHL) was down 60 cents, China Techfaith (CNTF) down 45 cents, and China GrenTech (GRRF) 38 cents, all Chinese stocks, as that group continued to slide off last week’s spike highs.
Lumera (LMRA) gave back 39 cents, and Simpletech (STEC), one of our portfolio positions, 24 cents.
Stepping back and reviewing the hourly chart patterns, the NDX remains above its rising moving averages on the hourly charts, but the S&P is below, so we have a mixed picture.
Late in the day today the S&P pulled back off its 40-day moving average and 4-day declining tops line, so the downtrend continues in the S&P, but again the short-term uptrend in the NDX has the picture mixed and cloudy. Until that clears up, we urge caution.
Harry Boxer is a technical consultant to many Wall Street hedge funds and large institutional traders, and author of TheTechTrader.com, a real-time diary of his day, swing and intermediate-term trades. 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.
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