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Big Stock Market Rally on Friday Saves the Week
By Harry Boxer | Published  10/28/2005 | Stocks | Unrated
Big Stock Market Rally on Friday Saves the Week

The markets had a BIG Friday rally off the morning lows.  But, the day started out with a move down on the Nasdaq 100 to new pullback lows.  The S&P, however, started stronger and pulled back to a higher low and when it did not confirm the new NDX lows a strong rally started that took the indices sharply higher into the lunch hour.  

Around that time they pulled back and consolidated bullishly for a couple hours and then started up again in mid-afternoon, closing at the highs for the day going away on the blue chips.  The Nasdaq trailed once again today, mostly due to the SOX Index being down all session.

Net on the day the Dow closed back over 10,400 up nearly 173.  The S&P closed over 1198, up 19 1/2 points and right at secondary resistance.  The Nasdaq 100 gained 13 3/4, or 0.89%, a smaller percentage gain than the blue chips.   The SOX Index was down 2.77, but that was almost 12 points off the morning lows.  So even the SOX came back strongly despite not being able to get back into positive territory.

Technicals were solidly positive with 2342 up and 885 down on New York.  Up/down volume was more than 5 to 1 positive on total volume of nearly 1 3/4 billion.  Nasdaq traded 1.85 billion shares, with up/down volume nearly 2 to 1 positive, and advance-declines more than 2 to 1 positive as well.

TheTechTrader.com board was fractionally mixed today. Most stocks that were down this morning came back, but some did not make it back into positive territory, while others did but just fractionally so.

As a result, there were no stocks on my board up or down as much as a point.  On the plus side, Cutera (CUTR) was up 43 cents, Dynamic Materials (BOOM) 37 cents, Convera (CNVR) 33 cents, Global Industries (GLBL) 33 cents, and Rediff.com India (REDF) 36 cents.

On the downside, Energy Conversion Devices (ENER) was down 96 cents, Forward Industries (FORD) 67 cents, BioCryst Pharmaceuticals (BCRX) 41 cents, Real Networks (RNWK) 78 cents and Vertex Pharmaceuticals (VRTX) 56 cents.

Low-priced Novavax (NVAX) continued its recent descent, losing another 41 cents on 25 million shares.

Stepping back and reviewing the hourly chart patterns, despite the fact that the NDX plunged through key short-term support, it stabilized shortly thereafter and managed to rally back up near overhead resistance around 1560, closing at 1557.

The SPX snapped back and took a large chunk back of the two-day decline, about 75 percent of it, closing right near the 1198-1200 resistance zone.

It's going to be interesting to see if the market can follow through on Monday and confirm a bottom here, but with the Fed meeting on Tuesday we may see some additional volatility as well as some hesitancy.

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.