Nasdaq Composite (Figure 3)
The Dow Jones Industrial Average ($DJI) had a gain of 124.35 points, or 1.03%, and closed at 12,214.38 on Wednesday. Fewer than half of the Dow's thirty index components posted a gain. The top performers were IBM (+2.21%), Home Depot (HD) (+1.70%), AT&T (T) (+1.20%), and WalMart (WMT) (+1.15%). At least six brokerages raised their price targets on IBM, which helped account for its unusual wide intraday price move. The biggest losers were Caterpillar Inc. (CAT) (-1.70%), Chevron Corp. (CVX) (-1.57%), Alcoa (AA) (-1.15%), and DuPont (DD) (-1.01%).
The S&P 500 ($SPX) rose 11.69 points, or 0.89%, and closed at 1,321.82. The strongest percentage performers in the index were JC Penney (JCP) (+4.76%), Tyson Foods Inc. (TSN) (+4.31%), Yahoo Inc. (YHOO) (+4.19%), and CB Richard Ellis Group (CBG) (+4.11%). JDS Uniphase (JDSU) was the biggest loser. It fell 16.71% in sympathy with rival Finisar's (FNSR) disappointing outlook. Other top decliners were Altera Corp. (ALTR) (-7.07%), Novellus Sys. (NVLS) (-5.84%), and Xilinx (XLNX) (-5.54%).
The Nasdaq Composite ($COMPX) ended the session higher by 20.14 points, or 0.73%, on Wednesday and it closed at 2,765.77. Yahoo (YHOO) (+4.19%), Symantec Corp. (SYMC) (+2.38%), Starbucks (SBUX) (+1.56%), and Millicom Intl. (MICC) (+1.54%) were the strongest performers in the Nasdaq-100. The weakest were Altera Corp. (ALTR) (-7.07%), Lam Research (LRCX) (-6.85%), Xilinx (XLNX) (-5.54%), and Micron Technology (MU) (-5.23%).
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.