The markets had another up-day and the blue chips went to new rally highs early in the session. 

There was a very sharp up-gap at the opening.  The indices almost immediately sold off, sharply so on the NDX, but the blue chips held up better.  They bounced off support, came down and retested just before lunch hour, meandered through the lunch hour and then rallied in the afternoon.  They pulled back mid-afternoon and turned up again towards the end of the session, although had another pullback just before the close.

So it was basically a 7-8 point narrow range for most of the session after the early action on the NDX, and a 4-5 point range on the S&P.  The indices refused to fold and head lower, but they also didn't break out above key intraday resistance.

Net on the day, the Dow was up 44 and change, and the S&P 500 up 6.  The Nasdaq 100 was up less than a point and the SOX up a little bit more than a point.

Advance-declines were 20 to 12 positive on New York, but about 15 to 14 negative on Nasdaq.  Up/down volume was 2 to 1 positive on New York with nearly 1.9 billion traded on options expiration day.  Nasdaq traded about 1.85 billion, and was about 9 to 8 positive on the up/down volume. 

So it was a mixed session, particularly on Nasdaq, and a  positive one for the blue chips.

TheTechTrader.com board was very mixed with a couple outstanding gainers as well as losers.  The rest of them were mostly narrowly mixed. 

On the plus side, DayStar Technologies (DSTI) exploded to a new all-time high, up 3.18, to close at 16.13 on 6 1/2 million shares, and right near the high for the day.

Vertex Pharmaceuticals (VRTX) was up 1.35 on more than 4 million shares, an active day there.  Parlux Fragrances (PARL) was up 81 cents, Kendle International (KNDL) 52 cents, and aQuantive (AQNT) 43 cents.

On the downside, Internet Initiative Japan (IIJI) gave it back big time, losing nearly 1/3 of its value, down 3.58 on 19 million shares.  That stock's been nearly cut in half in the last four sessions.  Dynamic Materials (BOOM) was down a point on less than a million shares.  Able Energy (ABLE) in the junior energy sector was down 62 cents and Georesources (GEOI) down 31 cents.

Alternative energy stock Energy Conversion Devices (ENER) was up 24 cents, but Evergreen Solar (ESLR) was down 8 cents.

Most other stocks on our board were fractionally changed.

Stepping back and reviewing the overall patterns, the patterns still look bullish in that they are now above the moving averages, and with the S&P and Dow at or near the highs for the year, and the NDX in positive territory above its moving averages, we could still move higher from here.

But there are still enough negative divergences and cycle highs coming up here that we may very well have a down-week next week.  We'll see how it goes.  Until momentum is broken, the trend is still up.

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.