It was a very strong session for the indices and a significant one. The day started out with a move-up from the get-go, which accelerated sharply in the first 45 minutes. They went up to key resistance on Nasdaq but through it on the S&P 500, and then had a pullback right to the beginning of the lunch hour. At that point the indices began moving up again and broke out again. The SPX made new highs ,but the Nasdaq 100 didn't, and at that point they pulled back, successfully retested the intraday moving averages and had a very strong surge into the close, closing near the highs for the day.

The Dow crossed 10,700, closing at 10,716, up 123. The S&P 500 managed to get over 1200, a key resistance level, closing at 1203, up 13. The Nasdaq 100 got through the 1531-33 resistance zone, closing at 1534 and change, up 26 1/4, with the Composite up 29. The key today was the semiconductor group, which flew, with the SOX Index was up nearly 4 1/2 percent, up 17.46.

The technicals were very solid, particularly on New York, where advance-declines were more than 3 to 1 positive. Nasdaq was 2 to 1. Up/down volume was 3 1/2 to 1 on New York on total volume of just about 1 1/3 billion. Nasdaq volume was just 1.6 billion. The only minor negative factor today was that total volume wasn't as heavy as I would have liked to see, but no denying price action.

TheTechTrader.com board was mostly higher. Outstanding stocks today were Broadcom (BRCM), up 1.68, and the SMH, up 1.50, very strong moves through a key 2-month declining tops lines. Intel (INTC) closed near the high for the session, up 62 cents, and that certainly helped the SOX and SMH along with Nasdaq. The QQQQs as a result of all this were up 60 cents.

Other stocks of note, in my smaller-cap sector, Click Commerce (CKCM) exploded today, up 2.38. Parlux Fragrances (PARL) snapped back a dollar. Mikron (MIKR) was up 52 cents. Keryx (KERX), one of our Charts of the Week, was up 69 cents. IMAX exploded for nearly a point today on heavy volume. Harmonic (HLIT) was up 27 cents, and Applied Digital (ADSX) had a very solid session and a key breakout, up 68 cents today and closing at the high for the session.

On the downside, World Poker Tour (WPTE) gave back a portion of yesterday's big gains, down 73 cents. Evergreen Solar (ESLR) was down 30 cents today, closing at the low for the session and on heavy volume, under pressure today. Travelzoo (TZOO) was off 83 cents.

Stepping back and reviewing the overall patterns, the significance of today's action was the key breakout above resistance and to new rally highs for the Dow and S&P. Key overhead resistance was at the 1195-96 zone, and the S&P 500 surged through it late in the afternoon and closed at 1203. The NDX did take out the earlier week Fed rally high at 1531, which was also in the 1530-33 resistance zone, closing at 1535, just nominally above that.

Monday will be a key session, because it will indicate whether this was just a Friday afternoon short covering assisted rally, or whether it was the real thing.

The other key factor is that the declining channel and declining tops lines that had dominated the trend for the prior four weeks, not only were broken but retested and then higher highs were made. It certainly looks like they've broken back out, and the S&P is not that far from the January 3, 2005 highs up around the 1218 area, closing today at 1203.

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.