NASDAQ Technical Picture - Bears Own It

Although down substantially from the previous two sessions, the markets were hit again in the early going amid additional credit issues/write downs (WB, BCS) and a disappointing outlook in technology from QCOM. The averages slipped under Thursday's lows and attempted to pick themselves up but were met with some aggressive selling into the close ahead of the banking long weekend. Still, the Comp held at the 50% retracement of the Aug-Oct rally at 2624 (session low 2624), while the S&P 500 stabilized near the 62% retracement at 1449 (session low 1448.51).

A bounce in the recent market laggards such as Finance, Banking, Housing Insurance and Broker helped pace the way during the attempted rebound . Unfortunately, the buy side interest was limited given the size of the drop off of Tuesday highs and going into a long weekend.

Sectors weighing on the action included: Retail -3.2%, Software -3%, Tobacco -3%, Computer-Hardware -2.8%, Internet -2.8%, Networking -2.7%, Airline -2.7%, Steel -2.6% Chemical -2.3%, Restaurant -2%, and Transports -2%. The weak close trimmed the gainers list which included: Disk Drive +1.7%, Housing +1.3%, Insurance +0.5%, Bank +0.4% and Casino +0.4%. Despite closing near sessions lows, the extended posture of the technicals suggests the potential for a technical bounce early next week.

Stocks over $5 posting the largest percentage loss over the last five sessions include: LEAP -71.3%, MNTA -58.4%, NSTK -56.1%, KNXA -38.8%, CLWR -37.6%, EBS -37.6%, PRGX -36.9%, HDNG -36.4%, BID -34.7%, NAHC -33.4%, GVHR -32%, MTZ -31.8%, DHX -30.3%, SAM -30%, AMRI -29.3%, ZUMZ -29.2%, ABH -29.2%, CCRT -29.1%, ARII -29.1%, DTPI -29%, PRS -28.7%, HANS -28.3%, IQW -28.2%, PRKR -28.2%, LLNW -27.6%, CISG -26.8%, EJ -26.8%, DSX -26.7%, MDRX -26.6%, IIG -26.2%, PCS -26.2%, ACAD -25.9%, MALL -25.7%, WX -25.3%, NED -25.1%, CTB -24.3%.

Stocks over $5 posting the largest percentage gain over the last five sessions include: RSTO 122.8%, DIVX 42.7%, MFLX 34.4%, AGO 34.4%, SPC 32.2%, AFR 25.7%, RWT 25.4%, KND 25.4%, BSMD 24.5%, CBK 22.8%, VCI 22.8%, WCG 21.7%, TRLG 21.6%, HL 21.2%, GYMB 19.3%, HMN 19.1%, RAS 18.4%, PBR 17.8%, MVL 17.4%, BR 17%, BIOS 16.7%, AIXG 16.6%, ABK 16.8%, CEVA 16.5%, EXAS 16.1%, ERES 16%, REW 15.9%, PBR.A 15.9%, BRS 15.9%, PMI 15.7%, PSPT 15.7%, RAMR 15.7%, ONXX 15.7%, RDN 15.7%, MTG 15.3%, TXCO 15.3%, MBT 15.3%, ENER 15.1%, PCLN 15%, ESLR 14.9%.

NYSE October short interest highlights:

Earlier this week NYSE released its October short interest data, which was collected on the 15th. According to Bloomberg, the stocks with the largest short interest as a percentage of the float include: BZH 91%; WCI 77%; HOV 72%; IMB 59%; TOA 59%; FED 56%; TWP 54%; BHS 52%; SPF 52%; AXR 51%; DSL 50%; G 46%; MHO 44%; MTH 44%; HEI 42%... The biggest increases in short-interest as a percentage of the float, from mid-September to mid-October, are as follows: XJT's short interest rose to 25% of the float from 12%; RDN is up to 24% from 14%; PFB up to 22% from 13%; VMW up to 35% from 26%; CMG up to 36% from 26%; HAR up to 9% from 1%; SPF up to 52% from 44%; SCA up to 14% from 7%; HCR up to 16% from 10%; IMB up to 59% from 54%... The biggest decreases in short-interest from mid- September to mid-October are as follows: BZH's short interest dropped to 91% from 99%; MA down to 14% from 19%; TOA down to 59% from 64%; ORA down to 8% from 12%; BIG down to 28% from 32%; AUY down to 2% from 5%; NCS down to 14% from 17%; MMC down to 3% from 6%; GWW down to 7% from 10%; VSE down to 15% from 17%.

NASDAQ October short interest highlights:

Earlier this week NASDAQ released its October short interest data, which was collected on the 15th. According to Bloomberg, the stocks with the largest short interest as a percentage of the float include: USNA 106%; CCRT 75%; CONN 69%; GLBC 68%; MDTL 64%; NTRI 57%; TRLG 56%; CORS 54%; JOSB 50%; TGIC 49%; PRAA 45%; RATE 44%; CHNR 44%; FTEK 44%; BKUNA 43%... The biggest increases in short-interest as a percentage of the float, from mid-September to mid-October, are as follows: CHNR's short interest rose to 44% of the float from 14%; LLNW is up to 17% from 5%; WBMD up to 34% from 22%; ATHN up to 18% from 6%; NTRI up to 57% from 46%; INFN up to 20% from 9%; HNSN up to 26% from 15%; CALM up to 30% from 22%; EFUT up to 30% from 22%; STAR up to 9% from 1%... The biggest decreases in short-interest from mid-September to mid-October are as follows: COMV's short interest dropped to 11% from 35%; HINT down to 20% from 32%; QNTA down to 0% from 8%; CONN down to 69% from 75%; PRGX down to 2% from 8%; EEFT down to 15% from 19%; WERN down to 24% from 28%; MNTA down to 36% from 40%; ITMN down to 16% from 20%; CCRT down to 75% from 79%.