The markets had another up-day extending the rally of the last few days.  But it was a choppier session, with three periods of profit-taking, each of which held support.  At the end of the day the indices closed not far off the highs.

The Dow was up 45, the S&P 500 up 5 and the Nasdaq 100 up 8 Ã,¼.  However, the Philadelphia Semiconductor Index (SOXX) was down 3.63 today and pressured Nasdaq all day.  With that coming down on a day like this, it may be a precursor or negative divergence which could lead to a pullback/retest over the next day or two.

The technicals did confirm the rally today, with a 5 to 3 positive ratio on advance-declines on New York and 3 to 2 on Nasdaq.  Up/down volume was about 2 to 1 positive, on nearly 1 2/3 billion traded.  Nasdaq traded nearly 1.8 billion with a 13 to 5 positive ratio.

TheTechTrader.com board  was mostly higher and active, led by far by Energy Conversion Devices (ENER)on an excellent earnings report , up 4.21 on more than 6 million shares, breaking out of a 2-month potential head-and-shoulders bottoming formation.

Recent Chart of the Week U.S. Global Investors (GROW) snapped back 2.30 on 1 1/3 million, and Baidu.com (BIDU) on positive comments was up 3 Ã,½ points today on more than 3 million shares.

Apple Computer (AAPL) closed near the highs for the day, up 1.57 on more than 40 million shares today to a new 8 month high!. 

Other gainers of note, IIVI advanced 93 cents, Fuel Tech (FTEK) up 57 cents, GIGM 55 cents, and DXP Enterprises (DXPE) came back 77 cents. Akamai (AKAM) was up 90 cents, Avici Systems (AVCI) 38 cents, DRYS 47 cents, Forward Industries (FORD) 71 cents, and Stereotaxis (STXS) 45 cents.

On the downside, there were just a few losers on our board. Broadcom (BRCM) closed on a negative note, down 36 cents.   Qualcomm (QCOM) fell 35 cents, SIGM 20 cents, and Vertex Pharmaceuticals (VRTX) 25 cents.

Stepping back and reviewing the hourly chart patterns, the indices continued to rally and went to new 2006 highs, nearing the top of their rising up-channels, starting to get overbought, but momentum still strong to the upside. 

Tomorrow weââ,¬â"¢ll be watching NDX support at 1618 and beneath that around 1612.

Resistance is right near todayââ,¬â"¢s high around 1625.

On the S&P 500, support is around the 1317 & then 1314 area, and resistance at 1320.

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.