The indices had another up-session and a positive follow-through to yesterday's breakout rally.  The day started out with a pullback that tested support and successfully so in the morning.  They rallied strongly to new rally highs, and then for the rest of the day meandered slightly higher, testing the 1600 range on the Nasdaq 100 and the 1237 area on the S&P 500 before a pullback in the last 45 minutes or so brought them off the highs for the day.

Net on the day the Dow closed at 10,633, up more than 44.  The S&P was up nearly 3 to 1236 and change.  The Nasdaq 100, just under 1600 by a few cents, was up 2 1/2. The SOX was down 1.31 today, and that hampered Nasdaq, and probably kept the indices from having a much better day.

The technicals were slightly positive on advance-declines by 150 issues on New York and by 250 issues on Nasdaq.  But up/down volume was much better by 9 to 5 on both exchanges, with volume less than 1.5 billion on both exchanges.

TheTechTrader.com board was mostly higher today.  Trading was halted early on one of our Charts of the Week portfolio positions, ID Biomedical (IDBE), as the company announced it was being acquired by Glaxo.  We exited our position at 31, and the stock closed at 29.46, up 3.46.

Thinly traded Industrial Services of America (IDSA) exploded for more than 40 percent today, up 2.15 to 7.05.  Momenta Pharmaceuticals (MNTA) in the junior biotech sector was up 1.63, Amylin Pharmaceuticals (AMLN) up 41 cents, and Sirna Therapeutics (RNAI) jumped 54 cents today on 8.2 million shares.

Among others in that group, ViroPharma (VPHM) was up 93 cents to a new multi-year high, and Vertex Pharmaceuticals (VRTX) was up 18 cents.

Forward Industries (FORD) was up 1.09, and in the alternative energy sector DayStar Technologies (DSTI) advanced 93 cents, Evergreen Solar (ESLR) 36 cents, and Energy Conversion Devices (ENER) 29 cents.

On the downside, Meadow Valley (MVCO) dropped 79 cents.  Most other stocks were only fractionally lower.

Stepping back and reviewing the hourly chart patterns, the follow-through to yesterday's breakout shows rising flag patterns and the rally continues.

Key support now is at 1590-91 NDX and the 1228-30 zone on the S&P.  We'll be keeping an eye on that.  Next formidable resistance should be tested at 1608-10 on the NDX and the 1242-45 zone on the S&P.

Good trading!

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.