The indices started the week strong, gapping up at the opening. They did pull back quickly but held support, rallied to new session highs in the morning and then pulled back to retest, which was successful. They then embarked on a steady but choppy rally that lasted for the rest of the session, taking the indices to new session highs until about 15 minutes to go, when a late pullback brought them off the highs.

Net on the day it was a very strong start to the week, up 172 on the Dow, 15 1/4 on the S&P, and 36.34 on the Nasdaq 100.

The Philadelphia Semiconductor Index (SOXX) was up 10.76, or more than 3 percent. Technicals were positive today by more than 2 to 1 on advance-declines on New York and 3 to 2 on Nasdaq. Up/down volume was 2 1/2 to 1 positive on New York, with total volume there of 1.4 billion. Nasdaq traded more than 2.1 billion and had a 3 to 1 positive ratio of advancing volume over declining volume.

TheTechTrader.com board was mixed but mostly higher. A lot of stocks were up just small fractions, although there were several point-plus gainers. Chart of the Week Converted Organics (COIN) exploded today, up more than 5 points at one point, closing up 3.60 on 12 million shares, nearly 3 times the float. Chindex (CHDX), one of our old favorites, exploded for 2.81 today on financing news, and closed at a new all-time high, at 38.81.

Blue Phoenix (BPHX) was up 2 points to 20.66, and portfolio position Sigma Designs (SIGM) was up 1.30. UEPS, one of our old favorites and a former portfolio position, was up 1.65, and Pharmasset (VRUS) was up 3.03.

Other stocks of note, Energy Conversion Devices (ENER) jumped 69 cents and Excel Maritime (EXM) 75 cents in a mixed shipping group. Global Solutions (GSOL) gained 42 cents, Incyte Corp (INCY) up 54 cents,

On the downside, Chart of the Week Origin Agritech (SEED) exploded in the morning, jumped to more than $12, but closed at 9.65, down 1.26 on a negative reversal today on nearly 11 million shares.

Other than that, there were just fractional losses across the board. Solar energy stocks were generally mixed to weak. Akeena Solar (AKNS) fell 74 cents, China Sunergy (CSUN) down 50 cents, and Solarfun (SOLF) down 20 cents.

Stepping back and reviewing the hourly chart patterns, the indices gapped up, pulled back twice, retested successfully and ran for the second half of the session in choppy, stair-step manner but steadily higher. The overall developing patterns on the indices look like potential bottoming patterns. Until key overhead resistance is taken out, particularly on the S&P at 1430, the direction is still in doubt.

But the start to the week was very promising.

Harry Boxer is a technical consultant to many Wall Street hedge funds and large institutional traders, and author of TheTechTrader.com, a real-time diary of his day, swing and intermediate-term trades. For more of Harry Boxer, sign up for a free 15-day trial to his Real-Time Technical Trading Diary, or sign up for a free 30-day trial to his Top Charts of the Week service.