The indices had another strong session, closing near the highs for the session, and the third solid day in a row. The day started out with a gap-up at the opening. They pulled back quickly, but held support, and then for the rest of the morning and into early afternoon they moved steadily up the intraday moving averages, reaching their peaks for the day just around the lunch hour. They backed and filled in the early afternoon and meandered sideways in a consolidation pattern, but a last-hour drop retested the pullback lows successfully. They were unable to muster anything more than that, although they did hold up very nicely.

The Dow closed up 132 1/2 points today, the S&P was up 11 3/4, the Nasdaq 100 was up 19, the Composite 26.50 and the SOX was up around 1 percent, up 4.33.

The technicals were very solid by 25 to 7 positive on New York and 22 to 8 on Nasdaq.

TheTechTrader.com trading board today was very active and very strong with some outstanding issues today. Dynamic Materials (BOOM) popped another 2 1/2 points today on 2.3 million. Energy Conversion Devices (ENER) on positive news was up 2.26. Netflix (NFLX) was up 1.02. Multi-Fineline Electronix (MFLX) was up 1.08, JAMDAT Mobile (JMDT) was up 1.03, and Watchboard stock CryptoLogic (CRYP) was up 1.86.

Other strong advancers included Vertex Pharmaceuticals (VRTX) up 50 cents, Medicore (MDKI) up 40 cents, and Escalon Medical (ESMC) another 62 cents on top of yesterday's big gain.

In the large-cap sector, QLogic (QLGC) was up 71 cents, Broadcom (BRCM) 38 cents and Juniper Networks (JNPR) 69 cents to a new rally high.

On the downside, Forward Industries (FORD) was off 87 cents on some profit-taking from recent gains. That was the only loss to speak of on my board today.

Stepping back and reviewing the overall patterns, we broke through some key resistance levels today, and was confirmed by the S&P and Dow, so we'll see if we can extend this gain further. But right now the oscillators are becoming very overbought, and I would not be surprised to see the markets pull back and do some testing, particularly in light of the options expiration on Friday.

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.