The indices had a very strong finish to the session, despite a bit of a roller coaster ride today. 

The day started out with a strong gap-up which broke the NDX and S&P out across initial resistance.  However, secondary and more formidable resistance was much more difficult to get through, and after reaching those levels the indices backed off sharply mid-day.  But they held 2-day rising trendlines and secondary price support and snapped back, taking back all the mid-day losses, particularly on the S&P 500 and the Dow.  Nominal new highs were made late in the session on the Dow and S&P, but the NDX failed to confirm, and they backed off in the last 15-20 minutes.

Net on the day, however, the Dow was up more than 90, the S&P 500 up 12 3/4, and the Nasdaq 100 12 Ã,½.  That was despite the Philadelphia Semiconductor Index (SOXX) down 2.07 today and the SMH dropping 20 cents.

However, the session had strong technical underpinnings.  Advance-declines were positive by 26 to 7 on New York and about 21 to 9 Ã,½ on Nasdaq.  Up/down volume was 13 to 3 positive on New York with 1.6 billion.  Nasdaq traded 1.9 billion with a 13 to 5 positive ratio.

TheTechTrader.com board was active and mixed with some outstanding issues to the plus side.  Low-priced biotech Dynavax Technologies (DVAX) was up 2.39 on 19 Ã,½ million shares today on positive drug news.  Energy Conversion Devices (ENER) advanced 2.17 in the solar energy sector and Fuel Tech (FTEK) 1.01.  Recent Chart of the Week Jinpan(JST) was up 1.38. 

The star of the day today was Sigma Designs (SIGM), which came out with a very strong revenue increase report and jumped 3.60 on 4.6 million shares today to a new all-time high.

Biotech ViroPharma (VPHM) advanced 1.02, NVE Corp. (NVEC) gained 80 cents, and portfolio positions Home Inns & Hotels (HMIN) and China Medical (CMED) were up 63 cents and 76 cents, respectively.

On the downside, CSLR gabe back 1.47 from strong recent gains and Anika Therapeutics (ANIK) down 1.01 were the point-plus losers.  Most other stocks that lost were down just fractions.  The GLD gold ETF was down 41 cents today, but the USO oil ETF advanced 1.43.

Stepping back and reviewing the hourly chart patterns, after the sharp break on Monday the indices stabilized on Tuesday and rallied back today, but the Nasdaq 100 has failed to break back out across its price and moving average resistance on the hourly charts.  Although the S&P did take out moving average resistance it stalled near the 1400 level, which is price resistance. 

Itââ,¬â"¢s important that it gets follow-through tomorrow if the intermediate up trend is going to continue, but if they roll over and take out the 2-day trendlines then itââ,¬â"¢s very conceivable we can see an extension of the decline. 

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.