The indices had another strong follow-up session to yesterdayââ,¬â"¢s rally.  Despite a morning serious pullback, support held all day, and they closed near the highs for the day going away, and right at a 5 Ã,½-year high on the S&P 500, at the 2006 highs on the Dow Jones Industrials, and at a 4-month high on the Nasdaq 100.

The day started out with a slight move lower and then a pop higher that took the indices back up to new rally highs.  The morning pullback held support, and they stair-stepped up in the afternoon in an orderly fashion.

Net on the day the Dow was up 93 Ã,½, closing at 11,669.39, less than a point off the high for the day, and just a tad below the 11,670-plus high that was reached back in May.  The S&P 500 was up nearly 10 points and the Nasdaq 100 up 8.83, despite the fact the Philadelphia Semiconductor Index (SOXX) was down 1.58 today.  But that was some 5 Ã,½ points off the low.

The technicals were positive by 2 to 1 on advance-declines on New York, and by 16 to 13 on Nasdaq, which had a much more difficult day than the blue chips.  Up/down volume on New York was 4 to 3 positive with a little less than 1.7 billion traded.  Nasdaq traded a shade less than 2 billion, with 4 to 3 positive on up/down volume.

TheTechTrader.com board  was narrowly mixed, but there were some outstanding gainers.  ACOR on top of yesterdayââ,¬â"¢s huge gains popped another 2.50 on 24 Ã,½ million shares.  Thatââ,¬â"¢s a run from 2 Ã,¼ to 11.90 at its high today in just two sessions.  Apple Computer (AAPL) gained 1.86 and went to a new 8-month high.  Dynamic Materials Corp. (BOOM) advanced 1.21, DXP Enterprises (DXPE) set a new multi-month low today but snapped back with a vengeance, gaining 2 Ã,½ points off its low, closing at 22.89, up 1.82.

Other gains of note, II-VI, Inc. (IIVI) was up 73 cents, DryShips (DRYS) 26 cents, and Akamai (AKAM) up 35 cents, setting a new multi-year high today as well.

On the downside, Baidu.com (BIDU) gave back 1.08, Hansen Natural Corp. (HANS) 82 cents, RSH 39 cents, Qiao Xing Universal Telephone (XING) 30 cents, PW Eagle (PWEI) 42 cents and Interphase (INPH) 66 cents.

Stepping back and reviewing the hourly chart patterns, the mid-day pullback held support, and the indices rallied and closed back up near the session highs.  However, the Nasdaq 100, while closing near its highs today, failed to take out the morning highs to confirm the S&P new rally highs.  Weââ,¬â"¢ll see if we get that follow-through tomorrow.

Despite the fact that a lot of indices continue to negatively divergence and the rallyââ,¬â"¢s getting long in the tooth, the two-month rally continues.

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.