For most of the session the indices were having a strong up day, but they gave back a chunk in just the last 15-20 minutes. The day started out with a slight gap up, and then they ran hard and strong in the morning. The majority of the gains for the session were in the first hour of the day.
The indices then backed off a couple times, retested, and formed a pennant/flag-type consolidation, and then in the mid-afternoon they broke out, went to new highs, and looked like they were going to close with a bang. In the last 15 minutes they rolled over and gave back a chunk of the day's gains, but they were still up on the session.
The Dow was up 37 and change, the S&P up more than 8 1/2, and the NDX more than 22. The SOX was up about 7 3/4 points today, and helped Nasdaq with its strong gain.
The techicals were very strong by 25 to 8 on New York and by 22 to 8 1/2 on Nasdaq. Up/down volume was 3 1/2 to 1 positive on New York, with nearly 1.9 billion traded. Nasdaq traded just under that with a more than 5 to 1 positive ratio.
TheTechTrader.com board saw the vast majority higher today, with just a few fractional losses. The day was led by Apple Computer (AAPL), up 3 1/2 on 33 1/2 million shares. Broadcom (BRCM) was up a point in the large-cap sector.
In the smaller-cap sector, Cutera (CUTR) was up 1.61, and Forward Industries (FORD) 1.24. Neoware (NWRE) to a new multi-year high was up 1.56 and REDF up 1.20, one of our featured Charts of the Week. Vertex Pharmaceuticals (VRTX) was up 1.05.
Other stocks of note, Energy Conversion Devices (ENER) was up 65 cents, and Novavax (NVAX) rebounded smartly by 45 cents on 16.8 million shares. One of last week's Charts of the Week, BRLC, gained 55 cents, and Dynamic Materials (BOOM) 45 cents.
On the downside, Dendreon (DNDN) on a drug announcement opened higher but backed off sharply and closed down 43 cents on the day. Other than that, just small fractional losses among the losers.
Stepping back and reviewing the hourly chart patterns, the indices thrust through key overhead resistance and moving average resistance on the NDX, in particular, as well as the S&P. The S&P took out 1200 and then the 1204-05 resistance zones. The NDX immediately broke through 1560 and took out 1575.
Tomorrow we'll be watching to see if there's any follow-through, but it's Fed day and I expect a slow session in the morning before they announce. However, there may be some fireworks, as usual, after the Fed announces at 2:15.
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.