At this point, the best course of action is to sit and wait for shareholders to figure out their next move. I'd be a buyer on a move through $14, but not until then.
Nearest Resistance: $2.50
Nearest Support: N/A
Catalyst: Massive Layoffs
Another unlikely high-volume stock today is Affymax (AFFY). The $42 million biopharmaceutical firm is getting shellacked this afternoon following news that the firm would be cutting 75% of its workforce in a last-ditch effort to cut costs. The news is sending AFFY down more than 62.7% today alone, making it the biggest loser on the Nasdaq by far, and shoving it within a few cents of the critical $1 level.Technically speaking, Affymax is in very deep trouble; the stock just can't catch a bid. And that's put AFFY at new 52-week lows, a psychologically important condition that's adding fuel to the fire for sellers. For traders, if you're looking for an opportunity to get into AFFY at a bargain price, don't. This stock is 100% speculative from this point on. Electronic Arts Nearest Resistance: $19.50
Nearest Support: $17
Catalyst: CEO Resignation, Negative Guidance Electronic Arts (EA - Get Report) is another name that's getting sold off today, even if it's not moving quite as hard as Affymax. The $5 billion video game maker is down more than 8% this afternoon after it announced the 1-2 punch of negative guidance and the resignation of CEO John Riccitiello. EA has made some conspicuous missteps of late, most recently with the highly publicized problems with the newly released Sim City game that left more than one million buyers unable to play the title. While EA looks somewhat "toppy" after the drop today, the big red candle isn't the most significant part of this stock's price chart. Instead, it's more significant that shares haven't actually broken their primary uptrend since November. As long as that support line stays intact, more upside looks likely once sellers calm down. Look to buy on a bounce. Walgreen Nearest Resistance: N/A
Nearest Support: $42
Catalyst: Earnings Surprise On a more positive note, pharmacy chain Walgreen (WAG) is up close to 5% today following the announcement of second-quarter profits that bested expectations. Walgreen's expanding margins are only part of the story; an attractive alliance with drug distributor AmerisourceBergen (ABC) revealed today could lead to even bigger profits for the firm down the road.