The indices had 5 distinct sharp swings today, but a last-hour rally brought them back from a severe test of support, particularly on the S&P 500 at 815. When that was successful, for the 5th time in 2 days, they rallied back sharply.

Net on the day the Dow closed up 47.63 at 7837 and change, the S&P 500 up 9.60 at 825 and change, and the Nasdaq 100 up 25.33 to just over 1300 at 1300.75, up nearly 2 percent, a big day for that index. The Philadelphia Semiconductor Index (SOXX) gained 6.80 to 242.70.

Advance-declines were just under 3 to 1 positive on New York and 2 1/2 to 1 on Nasdaq. Up/down volume was 2 1/2 to 1 positive on New York on total volume of 1 1/3 billion. Nasdaq traded about 1 3/4 billion and had a 4 1/2 to 1 positive volume ratio.

TheTechTrader.com board was mostly higher. Point-plus gainers today included some of the agriculture stocks, with Potash (POT) up 2.82 to 82.50, Mosaic (MOS) up 2.67 to 45.61, and Agrium (AGU) up 71 cents 37.67.

In addition, Apple (AAPL) gained 1.32 to 116.32, Amazon (AMZN) 1.47 to 76.98, and Best Buy (BBY) 1.32 to 39.45.

Hartford Financial Services (HIG) advanced 1.14 to 9.59. However, that was nearly 2 points off its high on some positive news early this morning. Research in Motion (RIMM) advanced 1.96 to 61.91.

Other fractional gainers included Energy Conversion Devices (ENER) up 54 cents to 13.91. Akamai (AKAM) added 55 cents to close at 19.41, American Italian Pasta (AIPC) 45 cents to 32.63, and Aluminum Corp. of China (ACH) 51 cents to 17.53. Ultra Oil & Gas ProShares (DIG) advanced 49 cents to 23.24, and the U.S. Oil Fund ETF (USO) was up 55 cents today to 29.49.

On the downside, the UltraShort Real Estate ProShares (SRS) fell 1.87 to 43.26, the SKF ultrashort financial ETF 1.33 to 88.52, and the Direxion Large Cap Bear 3X Shares (BGZ) 2.16 to 55.26. Direxion Financial Bear 3x Shares (FAZ) lost 21 cents to 17.84, although was trading nearly a point higher with an hour to go.

Morgan Stanley (MS) fell 63 cents to 22.69 and Goldman Sachs (GS) 1.33 to 114.75, in a generally weaker financial sector.

Stepping back and reviewing the hourly chart patterns, the indices did very well by holding key support on the SPX, in particular, at around 815. That was the 5th or 6th time it's held in the last 2 days. That resulted in a late snapback rally which brought the indices back up. The overall pattern still suggests that a 3-day consolidation is underway, and if they mange to break to the upside from here they could extend this and take another leg higher.

Good trading!

Harry

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.

(c) 2009 AdviceTrade, Inc. All rights reserved. Distributed only by written permission of AdviceTrade and The Technical Trader at info@advicetrade.com . In using any portion of Harry Boxer's content, you agree to the terms and conditions governing the use of the service as described in our disclaimer at http://www.thetechtrader.com

Mr. Boxer's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Boxer's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

Harry Boxer Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.