The indices continued their winning ways in 2006 with their 5th-consecutive day up.  The day started out with a firm opening and then a rollover that tested support successfully.  For the next several hours the indices worked their way higher, reaching their session highs at mid-day.  An afternoon pullback came right down to the morning pullback lows and held successfully. Then they snapped back up and closed towards upper end of the range, with the S&P 500 closing very near the highs for the day.

Net on the day the Dow was up 52.59, and closed at 11,012, breaking through 11,000 for the first time in 4 ½ years.  The S&P 500 was up nearly 4 3/4, closing over 1290.  The Nasdaq 100 was up nearly 7, closing near 1742, and the SOX advanced 4 3/4, closing at 524.33.

The technicals were solidly ahead, with advance-declines more than 2 to 1 positive on New York and about 3 to 2 positive on Nasdaq.  Up/down volume was a little less than 3 to 2 positive on New York with a little less than 1 2/3 billion traded.  Nasdaq traded just about 2 billion shares, with a positive up/down volume ratio of about 2 to 1.

TheTechTrader.com board was very strong today, with many point-plus gainers.  Leading the way by far was Rambus (RMBS), which gapped up and ran hard all day on heavy volume of nearly 25 million shares, advancing 5.26.

BioCryst Pharmaceuticals (BCRX), one of our model portfolio positions, was up 1.52.  Radvision (RVSN), one of this week's Charts of the Week, was up 1.63.  Vertex Pharmaceuticals (VRTX) was up 1.52, Nuvelo (NUVO) up 1.29, and Astea International (ATEA), also a current portfolio position, up 1.26.

Ford Industries (FORD) snapped back 1.50, and Broadcom (BRCM) continued its advance, topping its 5-year highs, up 1.63.

On the downside, Energy Conversion Devices (ENER) was by far the biggest loser, although earlier in the day set a new all-time high near 47, closing at 42.64, down 2.33 on 3.1 million, a big negative reversal there.

All other stocks that were down on my board were just down small fractions, nothing to speak of.

Stepping back and reviewing the hourly chart patterns, the 2006 rally continued today, with the Nasdaq 100 now up about 110 points off its low just 5 days ago.  The S&P 500 is up about 45 points in the same period of time.  Although the indices bent in the afternoon they certainly didn't break, and momentum remains strong to the upside.

But the indices are now extended and I am expecting a pullback/retest or consolidation sometime this week, although it may go higher before that kind of pullback sets in.

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.