Boxer: Marginally lower On slow, Holiday session, acNov11
By Harry Boxer, The Technical Trader (www.thetechtrader.com
It was a boring day. The markets were marginally lower, but most of the damage was done in the first 30-40 minutes and the rest of the day the market just backed and filled and consolidated. With about 45 minutes to go, the market made its lows for the day, just slightly taking out the earlier lows on the Nasdaq 100 to a new session low, but the S&P 500 and Dow held. Then we bounced and firmed up on what looked like some short covering late in the day.
Net on the day, the Dow was down less than 19, the S&P 500 was only down ½ a point, the Nasdaq Composite was down a little less than 11, and the Nasdaq 100 was down around 5. Part of the reason for Nasdaq not being down more was that the SOX index was up more than 3 points today, or about ¾ of a percent. That helped Nasdaq firm up a little bit today off the lows.
Reviewing the technicals, the advance-declines were about 21 to 11 negative on Nasdaq, and about 19 to 13 on the NYSE. Up/down volume was 7 to 4 negative on New York, with about 1.25 billion traded, not too bad for Veterans Day. Nasdaq was a little less than 1.6 billion with about a 2 to 1 ratio of down volume versus up volume.
On my personal board, there were very small fractional changes, except for a couple of outstanding stocks today. China Yuchai (CYD) got hammered for more than 5 ¾ points on heavy volume, further reaction to the loss of one of their major customers potentially, and the stock is now down about 10 points in the last several sessions after a huge run-up the prior month.
QLogic (QLGC) on the plus side, up 1.23, was the leading gainer on my board, and Broadcom (BRCM) was also strong, up 87 cents today.
Stepping back and reviewing the patterns, the early morning slide took out important short-term support on the Nasdaq 100 and slightly so on the S&P 500, but they did recover back late in the day.
Right now with the hourly charts showing a moving average rollover and short-term support being taken out, it’s very conceivable we can see some lower prices.
However, short-term the market has reached an oversold condition and we may bounce back and do some retesting of resistance if and when we go lower.
Good trading!
Harry
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