Tough, Volatile Session Ends Lower

The stock market indices had a tough volatile session. However, the day ended at the lows for the day near key support of the last three sessions. So tomorrow will be a key day to see whether it will hold key support or not.

The day started out with a pop to the upside, and then a very sharp sell-off ensued. Just as sharp, they had a snapback to new highs, but the S&P 500 was unable to get through that level and indicated at that time that it could be seeing a negative divergence. Sure enough, the indices sold off sharply, particularly on Harry Reid’s comments regarding little progress that has been made among both the Democrats and Republicans in resolving the fiscal cliff. There was a sharp sell-off, which then rebounded to about a 50% retracement, but then rolled over into the close to end near the session lows going away.

Net on the day, the Dow was down 89.24 at 12,878.13, 10 points off the low. The S&P 500 was down 7.35 at 1398.94, not far off the low for the day. The Nasdaq 100 was down 10.25 at 2641.42, about 4 points off its low and 18 points off its high.

TheTechTrader board was mixed today, and despite Google Inc. (GOOG) being up 9.56 to 670.71, Apple Inc. (AAPL) was down 4.75 to 584.78. Goldman Sachs Group, Inc. (GS) fell 2.53 to 118.41, and International Business Machines Corporation (IBM) dropped 1.65 to 191.23. Amazon Inc. (AMZN) was nearly flat, down 22 cents to 243.40.

Other losers of note included Sarepta Therapeutics, Inc. (SRPT), which ran all the way up to 31.87, reached our swing trade target, and then rolled over to 28.75, down 2.26, a big reversal day. Research In Motion Limited (RIMM) also tagged our swing trade target before dropping by 1.26 to 10.72, on 84 million shares on a reversal day.

Gainers included ACADIA Pharmaceuticals Inc. (ACAD), on positive drug approval, jumped 3.13 to 5.43, or 136%, on 60 million shares. Immersion Corporation (IMMR) was up 1.63 higher to 6.32, and reached 6.39, or 35%, on 1.2 million shares. Peregrine Pharmaceuticals, Inc. (PPHM) popped 24 cents to 1.14, or 27%, on 10.8 million shares.

In addition, there were a lot of strong junior biotech stocks today. Transcept Pharmaceuticals, Inc. (TSPT) jumped 62 cents to 5.31, or 13%. Amicus Therapeutics, Inc. (FOLD) gained 60 cents to 5.51, or 12%, on 1.2 million shares.

Apogee Enterprises, Inc. (APOG) was up 2.17 to 22.92, Crocs, Inc. (CROX) up 1.14 to 13.49, BroadSoft, Inc. (BSFT) 2.40 to 32.53, Yelp, Inc. (YELP) 1.25 to 20.24, Las Vegas Sands Corp. (LVS) 2.33 to 46.36, Medifast Inc. (MED) 2.05 to 31.50, and Generac Holdings Inc. (GNRC) 1.94 to 33.95.

Corning Inc. (GLW) was up 78 cents to 12.13, Smart Balance, Inc (SMBL) up 87 cents to 12.48, Acme Packet, Inc. (APKT) 91 cents to 19.97, Amarin Corporation plc (AMRN) 64 cents to 12.13, First Solar, Inc. (FSLR) 97 cents to 26.28, and Green Mountain Coffee Roasters Inc. (GMCR), after strong earnings, closed up 34 cents to 28.95, but is trading over 34 1/2 in the aftermarket, nearly 6 points higher.

Stepping back and reviewing the hourly chart patterns, the indices were up early, then went down hard midmorning, rallied to new highs in the afternoon on the NDX, but couldn’t do so on the S&P 500. When that occurred, they rolled over, bounced, and then rolled over again to close at the afternoon and session, 2-day lows at key support at 1398 on the S&P 500.

We’ll see if there’s a downside break, or whether they hold it here tomorrow. Either way, it’s a key day tomorrow.

Good Trading!


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