We had a monster Monday, and the indices closed near the highs for the day going away.

The day started out with a strong gap-up.  They pulled back quickly but held, had a very strong morning rally which saw the indices push higher all morning.  Before lunch hour they peaked, pulled back, gave back about 50% of the rally on the Nasdaq 100, but the S&P 500 and Dow held up much better than that.

Early in the afternoon the indices reversed and moved steadily higher, taking out the morning highs late in the session and closing with a bang, with the Dow up 182.6 to 11051, the S&P 500 up 20.62, closing just under 1261, and the Nasdaq 100 up 30 Ã,½, closing up over 1482.  The Philadelphia Semiconductor Index (SOXX) was up 7 points today.

The technicals were the story with the advance-declines on New York 27 to 6 positive, and 22 Ã,½ to 7 Ã,½ on Nasdaq.  Up/down volume was a little less than 9 to 1 positive on New York, on total volume of just under 1.6 billion.  Nasdaq traded about 1.9 billion with a nearly 8 to 1 positive ratio.

TheTechTrader.com board was mostly higher across the board.  Point-plus gainers were plentiful.  Biotech stock Cardiome Pharma (CRME) gapped up on positive drug news, held steady all day and closed at the highs for the day going away, up 3.24 on more than 6 million shares.

Travelzoo (TZOO)  gained 1.97 today.  Chart of the Week Zevex (ZVXI) was up 1.44.  Recent pick and favorite PW Eagle (PWEI) was up 1.12, Hansen Natural Corp. (HANS) up 1.89, DXP Enterprises (DXPE) gained 1.84,but was another $2.50 higher in the aftermarket after delivering earnings above estimates. Energy Conversion Devices (ENER) jumped 1.20 and Dynamic Materials Corp. (BOOM) 1.15.  The India Fund (IFN) tracking stock was up 2.40, closing at the high for the day going away.

There were only a couple stocks on the downside by small fractions.  So, a solid day on the Street.

Stepping back and reviewing the hourly chart patterns, the NDX on Friday severely tested key support around 1450, and when they gapped up at the get-go this morning and ran hard and closed strong, that appeared to confirm a double bottom. 

The S&P 500 at the same time made higher lows, holding 1240 support on Friday, and then ran strong for most of the day today.  At the end of the day today the S&P tested last weekââ,¬â"¢s highs near 1262 1/2, and closed just beneath it.  Thatââ,¬â"¢s the level to watch tomorrow.

The NDX resistance level weââ,¬â"¢re keeping a close eye on is just under 1500 at around 1498, with minor resistance beneath that around 1490.

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.