The markets had a very bullish consolidation day after the big run yesterday.  Indices started out positive, then sold off rather sharply but held initial support.  They bounced mid-day, made lower highs, pulled back again and made higher lows, pulling into a coil pattern on the NDX.  Then they moved back up steadily towards the session highs over the last couple hours and closed right near there.

The Dow was up just 10, the S&P 500 up 2.28, and the Nasdaq 100 up 7.40, chiefly because the SOX Semiconductor Index was up more than 9 points today, or nearly 2 percent.  That was a strongly positive factor that kept Nasdaq afloat most of the session.

Technicals were positive by 5 to 3 on advance-declines on New York and 2 to 1 on Nasdaq.  Up/down volume was positive by 5 to 3 on New York on more than 1.7 billion traded and by 2 to 1 on Nasdaq on nearly 2.2 billion.

TheTechTrader.com board was active, with several outstanding issues today.  Travelzoo (TZOO) exploded for another 9 points through mid-afternoon, but gave back 4 of it, and still closed up more than 5 today on 9 million shares.   Portfolio position Energy Conversion Devices (ENER) was up 2.55, following up on the breakout of the day before yesterday and traded 2 1/2 million.

Cymer (CYMI), a stock we traded several times today, was up 6 1/2 points on 5.7 million.  Another stock we traded, Knight Capital Group (NITE), gained 2.78 on more than 13 million shares.

Level 3 Communications (LVLT), a portfolio position, advanced 18 cents on more than 30 million shares today.  Dynamic Materials Corp. (BOOM) was up 51 cents.  Endwave( ENWV) 42 cents, Eclipsys (ECLP) 45 cents, LMI Aerospace (LMIA) 36 cents, along with Universal Display (PANL) up 46 cents to a new multi-year high.  STKL advanced also to a two-year high, up 79 cents.  And Broadcom (BRCM) in the large-cap sector, was up more than 2 points, leading the way for the SOX Index and SMH.

On the downside, the losses were just fractional.  DXP Enterprises (DXPE) gave back 40 cents, AVI Biopharma (AVII) 25 cents, and Pacific Ethanol (PEIX) gave back 47 cents after jumping 2 points in the morning, reversing a big gain there.

Stepping back and reviewing the hourly chart patterns, the bullish thrust of yesterday was consolidated nicely today, and the indices closed very positively at the high end of the range for the day, with the NDX closing within pennies of its high.

Overhead resistance lies ahead in the 1745-50 zone on the NDX and the 1314-15 on the S&P 500.  We'll see how trading is affected by those resistance levels over the next couple days, but today's action augurs well for higher future prices.

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.