A very strong afternoon surge put the indices at new highs, with the Dow making all-time highs, the S&P 500 5 1/2-year highs, and the NDX 5-month highs.  The day started out with a gap up that immediately took out resistance.  They stalled on the Nasdaq 100 for several hours in a consolidation phase.  The S&P 500 made higher highs in the morning and then flagged late morning and early afternoon.  After lunch the indices continued to consolidate, but then finally broke out after release of the Fedââ,¬â"¢s Beige Book, and rallied steadily to close right at or near the session highs.

The Dow was up 96, near 11,950.  The S&P 500 was up just under 13, and the Nasdaq 100 up 27 1/4, with the Philadelphia Semiconductor Index (SOXX) up 6 1/4.

The technicals were very positive, with advance-declines 25 to 7 on New York and 23 to 7 on Nasdaq.  Up/down volume was more than 5 to 1 positive on New York total volume of more than 1.5 billion. Nasdaq traded just under 2 billion, with a ratio of more than 7 to 1 positive.

TheTechTrader.com board  was very strong with almost all gainers, led today by Apple Computer (AAPL), up 2.30.  Sigma Designs (SIGM) was up another 1.09 today on 2.3 million and closing at a 13-year high.

Other gainers of note, PW Eagle (PWEI) rallied strongly in the afternoon and gained 1.55.  Qualcomm (QCOM) gained 1.18 and DXP Enterprises (DXPE) 1.02.  Some of the Chinese stocks had a very strong session today, with CHNR up 1.22, China Automotive (CAAS) up 1.02, and CTDC up 59 cents.  Align Technology (ALGN) advanced 78 cents, Acorda Therapeutics (ACOR) another 76 cents, U.S. Global Investors (GROW) snapping back 70 cents, OSIS 82 cents, and Vertex Pharmaceuticals (VRTX) 51 cents. Smith Micro (SMSI) was up 64 cents and TASR 60 cents.

On the downside, there were only fractional losses.  Interphase (INPH), however, did give back 73 cents today.

Stepping back and reviewing the hourly chart patterns, the indices thrust higher and took out key resistance levels and went to new multi-year highs on the blue chips.

Momentum is still strong on the upside, and until this thing reverses we still have potentially more upside to go.  This rally is certainly getting long in the tooth, but with the way this thing looks now, the bulls could squeeze this thing up until and through the November elections.

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.