The indices had another solid session and didn't violate any intraday moving averages or support levels all day.

The day started out with a move up to new a rally high.  They backed off and tested support successfully, ran up to the highs again, backed off in a flag pattern into the lunch hour, and then had a spurt just before lunch hour that took them to the morning highs.  Another flag appeared during the lunch hour, and then the market rallied into the afternoon.

In the last hour or two the Dow and S&P made new 2005 highs, and the NDX refused to go any further but did hold in a consolidation pattern over the last 1 1/2 hours.

Net on the day the Dow was up 68 1/2, the S&P 500 nearly 7, the NDX about 6 2/3, and the SOX was barely ahead today by 0.4, but that was about 4 points off the low.

The technicals were very strong on New York by 24 to 9 on advance-declines and 19 to 11 on Nasdaq.  Up/down volume was about 11 to 4 positive on New York with over 1 1/2 billion traded.  Nasdaq traded over 1.7 billion with about a 3 to 2 positive ratio on up/down volume.

TheTechTrader.com board was very mixed and narrow with no stocks up or down as much as a point.

On the plus, a new stock we followed today, Depomed (DEPO), was up 68 cents on 7 million shares.  Global E-Point (GEPT) was up 60 cents on 3 million shares.  CryptoLogic (CRYP) was ahead 36 cents.  AXM Pharma (AXJ), one of our old favorites, was up a quarter on nearly 3/4 million shares today.

On the downside, Amylin Pharmaceuticals (AMLN) gave back 44 cents, Vertex Pharmaceuticals (VRTX) 72 cents, Netflix (NFLX) 61 cents and Kendle International (KNDL) 62 cents along with Energy Conversion Devices (ENER), off 49 cents.

As you can see, several of those were junior biotech/drug stocks that had a negative day today.

Stepping back and reviewing the hourly chart patterns, the rally continued to march ahead today to new 2005 highs for most of the indices, as support has continually been tested successfully without a break.  As long as momentum remains strong, the indices can continue higher despite several negative technical divergences. 

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.