The indices had a very strong session at the close, but they started out differently. They opened down and went lower and retested yesterday's lows on the Nasdaq 100 under 1500. The S&P, as well, got down to about 1193, just about a point or two above yesterday's lows, and then they reversed and very sharply. We had an extremely strong move in the morning that took the Nasdaq 100 from around 1499 to about 1532 to under two hours. The S&P went from about 1193 to 1208 in that period of time, and then the rest of the day we had a sideways flag-type consolidation on the S&P and a rising flag on the NDX. Only a late pullback took them off what was near the highs for the day.

The Dow got over 10,800 to 10,829, a new 2005 high, but closed under at it at 10,796, up 46.40. The S&P was up 8 1/4 to 1205, also a new 2005 high. The NDX rose 23.68 to 1530 1/2 and the Comp was up 23 1/2 to 2076.66. But most importantly, the SOX Index was up 3 1/2 percent today and really bolstered Nasdaq.

That was led by a move of 1.10 on Broadcom and 67 cents on Intel, and, as a result, the SMH was up 1.15 and helped the QQQQs move up 55 cents today.

Outstanding stocks today on our TheTechTrader.com board were World Poker Tour (WPTE), up 1.89 to a new high; ZI Communications (ZICA), up 1.23 on a breakout; and Air T (AIRT), up 1.47 to 20.77.

Sigma (SIGM) advanced 62 cents, MFLX 74 cents, and Keryx (KERX) 32 cents, with Harmonic Lightwave (HLIT) 30 cents, CryptoLogic (CRYP) 33 cents, and low-priced Deltathree (DDDC) up 39 cents.

On the downside, Imax (IMAX) backed off 47 cents, Parlux Fragrances (PARL) got hit for 1.57 on negative relative strength today.

Stepping back and reviewing the overall patterns, the blue chips went to new highs today. A very dramatic recovery from what looked like a precarious level just yesterday morning.

However, the NDX has not confirmed, and we need to get back over the 1541-42 zone to confirm the breakout on the S&P & Dow.

Good trading!

Harry

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.