Indices Rally Off Lows to Edge Positive

The stock market indices had a very interesting day. They started the day with an interesting gap up to resistance, followed by a 5-wave decline, a sharp one that took the indices back down to secondary support. By late morning when they held there, they embarked on a very strong afternoon rally that took the Nasdaq 100 from 4114 to 4180. The S&P 500 went from 2004 to 2026, and then backed off in the last half hour, but not too badly. They finished with profitable gains on the day.

Net on the day, the Dow was up 3.66 at 17,515.23. However, the low was 17,346, after being down 170 points. The S&P 500 was up 3.13 at 2022.55. The Nasdaq 100 went from 4119 to 4181, before pulling back to 4171.21, up 29.07.

Advance-declines were 19 to 12 negative on the New York Stock Exchange, and 16 to 11 negative on Nasdaq. Up/down volume was 3 to 2 negative on New York, with total volume of nearly 3.9 billion shares. Nasdaq traded 1.85 billion shares, and had a dead-even flat volume ratio.

TheTechTrader.com board was mixed. Leading the way to the upside was Priceline.com Incorporated (PCLN) up 16.73 to 1024.95, Apple Inc. (AAPL) up 2.73 to 108.72, and Netflix, Inc. (NFLX) up a whopping 11.46 to 348.80, and another 42 points to 390.00 in the afterhours on a strong earnings report. Google Inc. (GOOG), however, was down 1.18 to 506.90, and Amazon.com Inc. (AMZN) gave back 1.30 to 289.44.

Pharmacyclics Inc. (PCYC) ran 7.10 to 152.61, nearly 5%. Vipshop Holdings Limited (VIPS) was nearly flat, up 23 cents to 22.11, but Tesla Motors, Inc. (TSLA) lost 1.14 to 191.93.

Alibaba Group Holding Limited (BABA) was up 3.15 to 100.04, Ambarella, Inc. (AMBA) up 2.76 to 59.22, and Celldex Therapeutics, Inc. (CLDX), one of our favorites, 1.39 to 21.69. GW Pharmaceuticals (GWPH) gained 1.65 to 76.82, and Sorrento Therapeutics, Inc. (SRNE), which dropped intraday to 8.93, closed up 1.09 to 10.11.

TASER International Inc. (TASR) jumped on another contract, up 1.55 to 26.91, and traded as high as 27.45.

Checking the TheTechTrader.com percent-gain leaderboard, there were some strong gainers today that held on for most of the day. The VelocityShares 3x Inv Natural Gas ETN (DGAZ) gained 94 cents to 7.94, or 15.4%, on 11.7 million shares, reaching as high as 7.57, but sold off in the afternoon.

Cellceutix Corporation (CTIX), the key gainer today, had a nice 36% climb up 1.14 to 4.34, on 2.8 million shares. Smith & Wesson Holding Corporation (SWHC), on strong earnings, jumps 1.65 to 11.67, or 16 1/4, on 9 million shares, as gun sales surge.

Sucampo Pharmaceuticals, Inc. (SCMP) scooted along until just into the afternoon when it went nearly straight up, pulled back slightly, then went even high to 15.94, and then pulling back slightly again to close up 15.66 to 1.62, or 12%.

Gold had a good day today. The ETF Direxion Daily Gold Miners Bull 3X Shrs (NUGT) gained 1.96 to 20.64, or 10 1/2%, on 18.5 million shares. The Direxion Daily Jr Gld Mnrs Bull 3X Shrs (JNUG) advanced 5.12 to 45.55.

The ProShares UltraShort DJ-UBS Crude Oil (SCO) ran 8.13 to 97.93, or 9%, on 1.2 million shares.

Among other gainers, Aegerion Pharmaceuticals, Inc. (AEGR) was back up 2.24 to 25.04, Sohu.com Inc. (SOHU) up 4.62 to 54.56, Ophthotech Corporation (OPHT) 4.28 to 53.99, and Delta Air Lines Inc. (DAL), on strong earnings, 3.33 to 49.17.

Stepping back and reviewing the hourly chart patterns, the indices were down sharply after a gap opening, and then a 5-wave decline. They then turned it around and reached new session highs on the Nasdaq 100, but that was not confirmed by the S&P 500, and they backed off into the close to finish positive, but with underlying technicals that are rather negative. Let's say today was a questionable session.

Let's see what happens tomorrow.

Good Trading!