The indices started the week on the plus side, but all the gains were made in the first hour of trading or so.  The day started out with a gap up and a strong move from there.  A quick pullback was successful at holding support, and then they rallied even stronger until just before the lunch hour, setting the highs for the next several hours.

After meandering sideways for about 4-5 hours, the indices attempted another rally with about an hour to go.  They did make nominal new highs, but there was no follow-through and they sold off into the close.

Net on the day, the Dow was up a little less than 36, the S&P 500 ahead by 4.69, the Nasdaq 100 a little bit more than 19, and the SOX Index up just 0.284. 

The technicals were positive, but by just 9 to 7 on New York and 3 to 2 on Nasdaq on advance/declines.  Up/down volume was positive by 4 to 3 on New York on volume of about 1.4 billion shares.  Nasdaq traded about 1 2/3 billion with a little more than a 2 to 1 positive ratio on up/down volume.

TheTechTrader.com board was mostly higher.  BioCryst Pharmaceuticals (BCRX) advanced 1.26.  In that same group Novavax (NVAX), one of our Charts of the Week this week. advanced 60 cents on nearly 12 million shares.

Portfolio position Radvision (RVSN) was up 71 cents, Smith Micro (SMSI)65 cents, TradeStation (TRAD) 40 cents, Pacific Ethanol (PEIX) 59 cents, and Nastech (NSTK) 91 cents.

In the large-cap sector, Broadcom (BRCM) advanced 67 cents, while Apple Computer (APPL) gave back 47 cents.   Among other losses, Dynamic Materials Corp. (BOOM) gave back 73 cents and Energy Conversion Devices (ENER) 23 cents.  Applied Signal (APSG) was off 34 cents and Parlux Fragrances (PARL) lost 88 cents.  Most other stocks were very narrowly mixed.

Stepping back and reviewing the hourly chart patterns, the NDX banged  up against resistance today at 1700 on several occasions but couldn't break through.  On the other hand, the S&P did manage to get solidly above the 1294 resistance level and held it all session.  Although that level was retested late in the session, the uptrend continues and is still intact.

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.