The indices had a monster up-day fed by news from the Fed of a potential stoppage in interest rate increases.  The day started out very positively with strong pre market futures and a resultant opening gap-up.  We had a morning consolidation that looked corrective, and certainly resulted in a very strong follow-up rally.  Late morning the market took off, exploded into the lunch hour, and although we had a couple pullbacks in the afternoon, particularly after the Fed minutes were released, the indices still managed to claw their way back, going to new afternoon highs on the S&P and Dow but not on the Nasdaq 100.  So we got a non-confirmation on the late part of the rally.

Net on the day, the Dow was up 195 points. The S&P 500 was up 22.31, also very big move there, and the Nasdaq was up 32.32, nearly 2 percent. The SOX Semiconductor Index, in particular, led the way, up 17 points, or more than 3 percent today.

Technicals were very strong.  Advance-declines were positive by 26 to 7 on New York, a number we haven't seen in a while, and 22 to 8 1/2 on Nasdaq.  Up/down volume was even more impressive, more than 9 to 1 positive on the NYSE on total volume of more than 1.8 billion.  Nasdaq traded 2.2 billion today, with 1.9 billion to the upside, a strong plurality of more than 6 to 1.

TheTechTrader.com board was active.  Most stocks were higher, led by far today by Travelzoo (TZOO), which exploded on an increase in earningââ,¬â"¢s guidance, up 8.62, the Nasdaq percent gain leader today, on 7.4 million shares. 

Other stocks of note, DXP Enterprises (DXPE), one of our portfolio positions, popped 1.78 today.  Dynamic Materials Corp. (BOOM) advanced 90 cents.  Evergreen Solar (ESLR) was up 51 cents, and Eclipsys (ECLP) another portfolio position, up 50 cents.  Optelecom-NKF (OPTC) gained 63 cents, and portfolio position Universal Display (PANL) was up 62 cents to near a two-year high. Other portfolio positions: PW Eagle (PWEI) was up 58 cents, Sify Ltd. (SIFY) 49 cents, Stereotaxis (STXS) 32 cents .

On the downside, Pacific Ethanol (PEIX), despite a sharp gain in the morning, reaching new highs at 34.85, reversed very sharply, dropping more than 5 points at one point, but closing down 2.78, down 8 1/2 million, by far the loss leader today.  OraLabs (OLAB) dropped 71 cents and Energy Conversion Devices (ENER) gave back 26 cents.

Stepping back and reviewing the hourly chart patterns, the significance of today was that the current recent downtrend was broken and how today with a thrust higher on heavy volume and strong technicals.  By mid-day the indices had taken out their moving average resistance and then secondary price resistance on the hourly charts.  So it was a very impressive advance indeed and could augur well for future prices, and we'll see if we get a follow-through tomorrow.

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.