The markets had some volatility today. They started with a weak opening, but then had a very strong morning rally as the new Fed chairman Bernanke was speaking.  They went to their session highs about 45 minutes into the session and then had a pretty sharp sell-off that lasted just before lunch hour ended.  The S&P 500 at that point had made a new low; the NDX did not.  That positive divergence set up an afternoon rally that took us near the highs for the session.  They backed off, then came on again into the close.

Net on the day, the Dow was up 30 1/2, the S&P 500 4 1/2, the NDX 11.20, and the SOX up 1.77.

The technicals were solidly ahead today by 20 to 12 on advance-declines on New York and about 3 to 2 on Nasdaq. Up/down volume was 5 to 3 positive on New York on total volume just short of 1.7 billion.  Nasdaq traded more than 1 3/4 billion, with about a 2 1/2 to 1 positive ratio on up/down volume.

TheTechTrader.com board was fractionally mixed.  Low-priced Convera (CNVR), one of our former portfolio positions that we sold at 20, bounced today from below the 8 level, and closed at 9.35, up 1.51.  Apple Computer (AAPL) bounced back 1.58.  Those were the only point-plus gainers on my board today.

Dynamic Materials Corp. (BOOM) was up 96 cents, DayStar Technologies (DSTI) 85 cents, Neoware Systems (NWRE) 98 cents, TradeStation (TRAD) snapped back 61 cents, and Zevex (ZVXI) up 69 cents.

On the downside, the loss leader was Energy Conversion Devices (ENER), which backed off a point, but that was some 1.50 off the low, on 3 million shares.

OpenWAve (OPWV) was down 47 cents, Parlux Fragrances (PARL) down 56 cents, Pacific Ethanol (PEIX) down 36 cents, and Rediff.com India (REDF) off a quarter.  Stereotaxis (STXS) was down 22 cents.

Stepping back and reviewing the hourly chart patterns, the indices yesterday broke out above their moving averages and short term declining tops resistance on the hourly charts, but have now closed up near their 5-week declining tops resistance near the top of the current down-channels.

This is key overhead resistance, a key test as to whether or not the move can reverse the 5-week decline and extend the rally.

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.