Alert the media -- the market had two consecutive days to the upside.  Today's action was bullish price-wise, though the underlying technicals did not impress me with the underlying breadth.  We'll have to see if we can follow-through tomorrow, but certainly there still exist non-confirmations, and we'll have to get that before I get too excited.

The day started out with a gap-down.  They bounced and then made lower lows in the morning, and those turned out to be the lows for the day.  The NDX held 1470 and the S&P 1160 support.  They bounced back to retest the earlier highs, at which point they backed off into the lunch hour.  In the afternoon, though, the market, after making a higher low, moved straight higher, interrupted only by a late flag/consolidation pattern.  In the last hour the market moved steadily higher and closed at the high for the day going away on the Nasdaq 100.

At the end of the day the Dow was up nearly 80, the S&P 8.  The Nasdaq was outperformed, only up 9 3/4 on the Composite and 9 1/2 on the 100.  The SOX was up about 3.45, less than 1 percent.

The technicals were much better on New York today with 20 to 12 advance-declines, whereas Nasdaq was only 8 to 7 positive.  Up/down volume on New York was 2 1/2 to 1 positive.  Volume was less than 1.5 billion.  A similar amount was traded on Nasdaq, with the ratio there just 4 to 3 positive.  Most of the positive plurality came in the last hour of the day.

Checking the TheTechTrader.com board, the majority of stocks were up today, some of them strongly so.  JAMDAT Mobile (JMDT) was up 3.09 on heavy volume.  Forward Industries (FORD), a current Chart of the Week Watchboard position, was up more than a point on 3 1/2 million shares.

Low-priced Escalon Medical (ESMC), one of our old picks, was up 1.72, about a 35 percent gain on heavy volume.

Other stocks of note, Parlux Fragrances (PARL) was up 56 cents, Vasco Data Security (VDSI) to a new 4 1/2 year high up 33 cents, Energy Conversion Devices (ENER) snapped back 59 cents, and CryptoLogic (CRYP) was up 38 cents for the day.

On the downside, Taser (TASR) got hammered on some negative news, down 1.35.  There were very few other stocks down more than just small fractions.

Stepping back and reviewing the overall patterns, the rally that began on April 29 on the Nasdaq 100 moved to new rally highs today and we are now up about 100 points off the low in the last 3 weeks or so.

However, the S&P 500, despite having snapped back strongly off recently lows, is still several points beneath the triple top it created for itself around 1179, closing today at around 1174.

So, we'll have some testing to do over the next couple days.  It's going to be important to see whether the S&P and Dow can make new highs and confirm the rally on Nasdaq.

That's what we'll be keeping an eye on.

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.