The stock market indices staged a dramatic snapback rally after plunging early on following negative economic news.

The indices rallied very sharply with the Nasdaq 100 going from 2291 and change to 2325. That was about a 34-point rally on the NDX, closing right at the high for the day go away. The S&P 500 rallied back from 1305 to 1319, and also closed at the high for the day and at the multi-session snapback rally high as well.

So, there’s key resistance up in this zone on both indices. We’ll have to see if we can push through or not, but certainly today was a winner for the bulls.

Net on the day, the Dow was up 81.13 at 12,279.01. The S&P 500 was 9.25 up at 1319.44. The Nasdaq 100 up 22.44 at 2325.54.

Advance-declines were about 21 to 9 positive on the New York Stock Exchange and about 2 to 1 positive on Nasdaq. Up/down volume was a little better than 2 to 1 positive on New York on total volume of about 800 million shares. Nasdaq traded about 1.5, nearly 1.6, billion shares and had about an 11 to 4 positive volume ratio.

TheTechTrader.com board, as a result, was full of big winners today, making it a stellar day for our traders. Leading the way today was Molycorp, Inc. (MCP), up 4.14 to 59.65. VASCO Data Security International (VDSI) jumped 2.19 to 14.01, Amazon.com Inc. (AMZN) 5.27 to 174.62, Chipotle Mexican Grill, Inc. (CMG) 8.16 to 266.12, VirnetX Holding Corp (VHC) 2.75 to 19.29, OmniVision Technologies Inc. (OVTI) 2.72 to 36.07, Jazz Pharmaceuticals, Inc. (JAZZ) 2.12 to 32.12, and Goldman Sachs (GS) 2.00 to 158.47.

Among other gainers of note, Dendreon Corp. (DNDN) was up 1.92 to 35.88. Allot Communications Ltd. (ALLT), a day trade of ours, gained 1.53 to 14.94. International Business Machines Corp. (IBM) advanced 1.51 to 162.88, Immune 1.17 to 46.01, Rare Element Resources Ltd. (REE) in the very strong rare-earth group 1.21 to 13.40, and Avalon Rare Metals, Inc. Ordina (AVL) 92 cents to 8.15, also in that group.

In addition, Travelzoo Inc. (TZOO) gained 1.93 to 66.68 today, and SodaStream International Ltd. (SODA) snapped back 1.02 to 42.76. Rediff.com India Ltd. (REDF) jumped 70 cents to 7.65, Interphase Corp. (INPH) up 78 cents to 6.81, and TranSwitch Corp. (TXCC) another 32 cents to 4.61.

On the downside, the only point-plus losses were KV Pharmaceutical Co. (KVA) down 1.04 to 7.11, Spreadtrum Communications Inc. (SPRD) off 1.42 to 18.93, and the Direxion Daily Small Cap Bear 3X Shares (TZA) down 1.07 to 36.92.

Stepping back and reviewing the hourly chart patterns, after an early sharp dip that tested support, the indices rallied back very sharply, pulled back midday and successfully tested, and then ran again in the afternoon to close at the session highs going away.

An excellent days for the bulls, and a turnaround Tuesday to the upside for them as well.

Harry Boxer is a technical consultant to many Wall Street hedge funds and large institutional traders, and author of TheTechTrader.com.