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Boxer: Late Sell-Off but Still in Bullish Pattern, acNov07
By Harry Boxer, The Technical Trader http://www.thetechtrader.com

The market hung in there most of the day, but sold off late in the session. We had a strong opening, and the market backed and filled for most of the session. We did dip a couple times but held at support, and then also made 2-3 runs at the morning highs but failed to break out. In the last hour the market rolled over and came down fairly hard, especially in the last half hour and ended down on the session.

The Dow was down 47, the S&P 500 was down less than 5, the Nasdaq 100 down only 3.35 and the Composite only 5.63. So we had a narrowly down day today.

However, you’ll find that the technicals were rather positive for a down day, with NYSE advance-declines positive by 300 -- 1760 to 1460. Up/down volume was just barely positive in what was pretty much a stand-off there. We had a little more than 1 1/3 billion traded on New York and a little less than 2 billion on Nasdaq. There was a 16 to 15 advantage on advance-declines on Nasdaq, but a 10 to 9 advantage of down volume versus up volume.

Individually, many stocks I follow were up on the day. Nvida (NVDA) was the obvious leader today, up 3.58 on heavy volume on their earnings report last night. Qualcomm (QCOM) had a mid-day surge and closed up 1.38 on the day, and Broadcom (BRCM) was up 78 cents after being flat earlier in the session.

A few others of note, TIVO in the low-priced sector had a strong session, up 65 cents. Geron (GERN) in the biotech sector ran up sharply this morning, backed off, but still closed up 80 cents on the day on some news as well.

Continuing its phenomenal move in the last month, CYD is now up 100% in four weeks and hit a new 52-week high over 37 today, before closing at 36.45, up 75 cents.

Another low-priced stock of note is one we’ve been following for a couple years but haven’t mentioned lately, InterDigital (IDCC), which ran up to important overhead resistance and looks like it may want to break out here. It closed up 3/4 on the day.

Stepping back and looking at the overall chart patterns, after breaking out this morning, the market then backed and filled, held support, but was not able to break out further and backed off into the close. But it did hold its rising bottoms line.

So we’re still in a bullish pattern over the last three weeks, but today’s late sell-off may be the start of something. We’ll see what happens on Monday & whether they can hold and move higher or whether they break down further in following through on Friday afternoon’s sell-off.

Good trading!

Harry