NASDAQ Technical Picture - Bearish Outside Day

The bears took over the market in a big way today. The rate cut rally is coming to a close and I expect we'll get some real corrective action, notwithstanding a catalyst on the bull side.

The NASDAQ printed a higher high following the release of crude inventories and then carved out a bearish tweezer top, after which the selling began in earnest. Sector leadership on the downside transports, finance, housing, biotechs and internet, but all sectors, I follow were in the red by the end of the session.

Most of the rally off of the March lows has been on relative weak momentum as measured by the ADX. In fact, we only just recently rose above 20, so I suspect with rate cuts all but over, the markets will succumb to the bears short-term, as there seems to be little reason to move higher.

Companies trading higher in after hours in reaction to earnings: IDSY +27.3%; BAGL +18.2%; DRRX +17.1%; CROX +14.2%; NVEC +9.9%; URS +9.8%; AVCA +7.9%; WG +4.3%; AHS +4.0%; PHX +3.7%; VITA +3.5%; AUY +3.3%; ENSG +3.1%; EAC +3.0%; GCOM +2.7%; VHI +2.4%; PRSC +2.3%; ZIPR +2.3%; FCH +1.7%; BBBB +1.5%; PCR +1.5%; RUSHA +1.4%; PSSI +1.4%; AEL +1.4%; ISLN +1.4%; GSAT +1.4%; ARD +1.4%; NWS +1.3%; ROCK +1.3%; NKTR +1.2%; CPII +1.1%; CCRN +1.1%; SGU +1.0%... Companies trading down in reaction to earnings: SCI -27.5%; AIRN -17.0%; VRAZ -15.0%; KFS -13.8%; HANS -13.5%; OVEN -12.0%; NHWK -10.2%; NSR -9.2%; PSPT -8.5%; XRM -5.4%; CPNO -5.2%; INAP -4.4%; DPM -4.0%; ANDE -4.0%; CCRT -2.2%; SMSI -2.1%; GOLF-1.5%; GIL -1.4%; MSCS -1.3%; ACLS -1.1%; NPSP -1.0% ... Companies trading higher in after hours in reaction to news: ONT +15.7% (Sun adds comprehensive video capabilities to ubiquitous Java platform with On2 Technologies); TCX +12.7% (Announces a $10 million Stock Buyback Program); ZUMZ +7.7% (reports same store sales increase of 4.1% vs. 2.5% Briefing.com consensus); DSCO +4.9% (KL-4 surfactant technology displays antimicrobial properties and does not induce immune response in preclinical models); NCST +2.9% (appoints David Holtz as Vice President and CFO); SFE +2.0% (announces share repurchase of up to $10 mln; proposes reverse stock split); ITWO +1.7% (provides update on strategic review process; Chairman of the Board steps down); KOP +1.4% (announces retirement of Board Chairman and names successor); NKTR +1.2% (receives patent covering pulmonary targeted antibiotics)... Companies trading lower in reaction to news: RCMT -16.5% (announces Acquisition of MBH Solutions for $13 mln); NHWK -10.2% (announces dutch tender offer for its common stock); HOV -6.1% (announces 14 mln share follow-on offering); WU -1.4% (files S-3 ASR for offering of debt securities); APP -1.1% (reports April same store sales +27%); IBKR -0.7% (announces termination of follow-on offering).

AH courtesy of Briefing.com