The markets ended the week with some sharp swings and volatility based on negative Google earnings and positive news of a potential takeover of Yahoo by Microsoft.

The day started out with a move up. They then surged sharply higher and set the highs for the session in the first 20-30 minutes. A very sharp set-back ensued that took the NDX to new session lows and the S&P 500 as well, but the S&P held support while the NDX slightly violated it. They then started a 5-wave intraday advance at that point that lasted for the rest of the session and surged into the close, particularly on the Dow and S&P 500, although the NDX did back off late in the session.

Net on the day the Dow was up nearly 93, the S&P just under 17, and the Nasdaq 100 13.85. The Philadelphia Semiconductor Index (SOXX) was a big story today, where the semiconductors exploded. the Philadelphia Semiconductor Index (SOXX) was up 20.73, a gain of more than 5 percent today. So, a very strong session there, pushing the Nasdaq 100 higher, particularly in the afternoon.

The technicals were strong and came on positively in the last hour or two. Advance-declines were 25 to 6 1/2 positive on New York and a little better than 2 to 1 on Nasdaq. Up/down volume was the story, however, nearly 6 to 1 positive on New York on total volume of more than 1 3/4 billion. Nasdaq traded just under 3 billion with about a 21 to 8 positive ratio.

TheTechTrader.com board was mostly higher, but many of the stocks were up just small fractions, with a few major gainers.

Leading the way was Aluminum Corp. of China (ACH), up 4.88. Sigma Designs (SIGM) was up another 3.34 today, acting very strong of late. Recent portfolio position Emcore (EMKR) gained 1.43, current portfolio position Chindex (CHDX) 1.93 and Acordia Pharmaceuticals (ACOR) 1.50. The SMH gained 2.09 today, as would be expected with the sharp gain in the SOXX.

Solarfun (SOLF)was up 52 cents, Canadian Solar (CSIQ) 45 cents , Cepheid (CPHD) 40 cents, Cree Inc. (CREE) 45 cents, Energy Conversion Devices (ENER) 71 cents, and FuelTek (FTEK) 52 cents. Recent Chart of the Week ULBI snapped back 98 cents.

On the downside, point-plus losers included Excel Maritime (EXM) in the shipping sector, down 1.81 and other shipping stocks DryShips (DRYS) and TBS International (TBSI) both gave back sharp early gains and closed negatively by a fraction.

Stepping back and reviewing the hourly chart patterns, the indices got some volatility by moving sharply higher, then sharply lower, then coming back in a 5-wave advance at the end of the day, closing near the highs for the day.

The afternoon surge and strong close augur well for future price progress, as certain key short-term technical levels of resistance were taken out on the S&P, and the NDX is currently testing those levels. But we may get a follow-through on Monday that could spurt the indices even higher.

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.