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Boxer, Starting Wk with a Bang, acDec01

STARTING THE WEEK WITH A BANG
By Harry Boxer, The Technical Trader http://www.thetechtrader.com


The market started off with a bang today and ended up strongly to the plus side, near the highs for the session. The session opened with a gap, they ran to higher highs sharply in the morning, reaching the session highs on the Nasdaq 100, and pulled back sharply to test support, which was successful. They had another rally which took out the highs on the S&P but did not on the Nasdaq 100.

When that lack of confirmation occurred, the market then went into a slow slide that accelerated in the afternoon and went to the session lows with a couple hours to go, at which point they staged a very strong rally that took the indices right back up to the highs on the Nasdaq 100 and through them on the S&P 500 and Dow.

The Dow closed up 116 ½, just a tad below 9900. The S&P 500 closed a tad above 1070, up nearly 12. The Nasdaq 100 at 1447 was up nearly 23 and the Composite at 1990 was up 29 ½. So a strong day across the board.

Technicals confirmed the rally, with about 24 to 9 advancers over decliners on New York & about 21 to 11 on Nasdaq. Up/down volume was more than 4 to 1 positive on the New York Stock Exchange, with about 1.3 billion traded. Nasdaq had 1.8 billion traded, with nearly 1.3 billion of it to the upside or about 2 ½ to 1 positive on the up/down volume on Nasdaq.

The vast majority of stocks on my personal board were gainers today. Among the stocks we’ve been trading and following closely over the last few weeks in our Technical Trading Diary, China Yuchai (CYD) was up 2.60 and OmniVision (OVTI) was up 1 ¾. Low-priced Chipmos (IMOS) up 1.34 to 8.21 was very strong, and Alvarion (ALVR) went to a new 52-week high, up 87 cents, as did IBIS, up nearly 1 and closing over 17.

In the large-cap sector, market leaders Amgen (AMGN) up 1.61, Qualcomm (QCOM) 1.05, EBAY 1, and Broadcom (BRCM) 75 cents were the leaders on my personal board.

Stepping back and reviewing the patterns, today we tested the highs on the Nasdaq 100 and backed off sharply, but the back-off came right to important support and held before rallying again late in the session.

The S&P 500 and Dow acted stronger today, as the S&P closed over 1070, a new 52-week high, with the Dow right around the 9900 level.

No question the market acted strongly today, but we’ll see if we can follow-through and get a confirmation from the Nasdaq 100 over the next day or two. But right now momentum remains strong to the upside, and the market started the week off with a bang.

Good trading!

Harry