The week started out with an upday, but the indices were only marginally higher on Nasdaq and the S&P.  The day started out with a thrust to the upside, taking the NDX right up to its 2005 highs.  The S&P got up to as high as the 1224 area, also a resistance level, before they backed off sharply in the morning.  Support held, however, at the multi-day trendlines, and they rallied in a choppy fashion for the next several hours, taking the S&P and Dow to nominal new highs for the day.  The NDX did not confirm at that point.  When that occurred they sold off and pulled back towards the last half hour or so,but they managed to firm up again into the close. 

The Dow closed up 55 1/2, the S&P 2 3/4, the Nasdaq 100 1 1/4, and the SOX about 1 1/2 points.

The technicals were marginally positive by 18 to 14 on advance-declines on New York and about 17 to 13 on Nasdaq.  Up/down volume was 4 to 3 positive on New York with 1.4 billion.  Nasdaq traded over 1.5 billion with a little less than 3 to 2 positive on up/down volume.

TheTechTrader.com board was mixed but generally positive.  It was led by ViroPharma (VPHM), which, at 24.10, was up 3.11 on more than 10 million shares on an excellent earnings report. 

Other point-plus gainers included Forward Industries (FORD), up 1.96 on more than 1 million shares, and new “Chart of the Week” Dynamic Materials (BOOM), anticipating tomorrow's earning report, up 1.55 on 2.8 million.

Among other Charts of the Week portfolio picks, Internet Initiative Japan (IIJI) advanced 90 cents on more than 6 million shares.  Intellisync Corp. (SYNC) charged ahead to a new 18-month high, up 52 cents on nearly 4.9 million.  And Rediff.com India (REDF) gained 45 cents.

Other stocks of note, Sento (SNTO) was up 47 cents, Vertex Pharmaceuticals (VRTX) 61 cents, CryptoLogic (CRYP) snapping back 58 cents, and Dendreon (DNDN) up nearly 1/2 a point on more than 4 million shares on a fast-track designation by the FDA on their cancer drug Provenge.

On the downside, Energy Conversion Devices (ENER) continued under pressure, down 1.43.  In the alternative energy group, several other stock were marginally lower.

Other stocks on the downside were Neoware (NWRE) off 63 cents, Brillian Corp. (BRLC) 36 cents, Convera (CNVR) 28 cents, and Apple Computer (AAPL), which gave up nearly a point today.

Most other stocks on my board were just fractionally mixed.

Stepping back and reviewing the hourly chart patterns, after the huge gap last week, the rising channel of the last 3 days continued on Nasdaq.  Despite the fact that Nasdaq has made new highs, the S&P continued to fail to confirm.

Despite the near overbought condition on the indices they continue to work their way higher and I see no downside break of key support, yet.

Tomorrow I'll be closely watching the 1214-15 level in the S&P and the 1618-20 zone on the Nasdaq 100.

On the plus-side key overhead resistance at 1634-35 remains on the NDX and 1224-25 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.