The week started out with a mixed session, as the blue chips were weak despite the strength of the Nasdaq. The day started out with a gap up and then some vacillating action for about an hour. Then they dropped down sharply but held support. Another retest of support occurred just as the lunch hour was ending. An afternoon rally took the indices up quite nicely to new session highs, but not taking out last week's highs. The last hour they backed off into the close.

At the close, the Dow was down 18, the Nasdaq was up 10.55, and the S&P 500 was up 1.17. The SOX Semiconductor Index was barely changed, down .07.

Technicals were positive by 17 to 14 on New York and a like number on Nasdaq. Up/down volume was 7 to 5 positive on New York with total volume about 1.7 billion, and 8 to 5 positive on Nasdaq with total volume of about 1.4 billion.

TheTechTrader.com board was active, led by this week's two Charts of the Week portfolio stocks: Dynamic Materials (BOOM), which exploded today, up 3 1/4 on 2.7 million shares, and Forward Industries (FORD), which closed up 1 1/4 on more than 2.25 million. 

Among other Charts of the Week portfolio stocks,  Georesources (GEOI) was up 1.82, Able Energy (ABLE) up 42 cents, Medicore (MDKI) up 38 cents, Internet Initiative Japan (IIJI) up 85 cents and Energy Conversion Devices (ENER) up 38 cents.

DayStar Technologies (DSTI), which like ENER is an alternative energy stock, was up 34 cents.  Amylin Pharmaceuticals (AMLN) was up 1.70, Netflix (NFLX) up 78 cents, and Spire Corp. (SPIR) up 41 cents.

Reviewing the hourly chart patterns, the early morning declines severely tested the indices support, which did not break. Although the afternoon rally failed and rolled over, it is going to be interesting tomorrow to see if the indices can hold support as another test may be forthcoming.

But if the support is broken, we could see a deeper pullback. However, the trend is still up and has not been broken yet.

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.