> Sharp Rally Starts the Week
By Harry Boxer, The Technical Trader (www.thetechtrader.com)

The markets were up again in a very sharp rally to start the week. The day started out with a gap up and a very strong rally that took them to new 2009 highs. They then backed and filled for a few hours and then made nominal new highs above that, reaching 1814 and change on the Nasdaq 100 and close to 1114 on the S&P 500. Then a quick sharp sell off ensued, but in the last 20 minutes they snapped back to close positive.

Net on the day the Dow was up 136.64 at 10407.11, the S&P 500 up 15.81 at 1109.29, and the Nasdaq 100 up 18.95 at 1807.56. The Philadelphia Semiconductor Index (SOXX) was up 6.33, more than 2 percent.

Advance-declines were positive by nearly 5 to 1 on New York and by nearly 3 to 1 on Nasdaq. Up/down volume was more than 7 to 1 positive on New York on total volume of just over 1.1 billion. Nasdaq traded more than 2 billion and had a 4 to 1 positive volume ratio.

TheTechTrader.com board was nearly all positive other than the ultrashorts. Leading the way was shipper Genco (GNK), which advanced 2.71 to 27.62, along with Fuel System Solutions (FSYS), up 2.80 to 50.47.

The Direxion Daily Small Cap Bull 3x Shares (TNA) was up 3.15 to 43.75, the Direxion Financial Bull 3x Shares (FAS) 2.60 to 78.78, and Direxion Large Cap Bull 3X Shares (BGU) up 2.52 to 58.19. The U.S. Oil Fund ETF (USO) gained 1.17 to 40.29.

RINO International (RINO) jumped another 2.18 to 28.84. Revlon (REV) continued its monster move of the last two weeks from under 6 to almost 17 today, closing at 16.88, up another 1.72.

Westport Innovations (WPRT) added 1.12 to 12.23, and Nanometrics (NANO) 1.24 to 12.64.

Low-priced Netlist (NLST) continued its explosive move as well, reaching as high as 6.87 from less than 65 cents last week, closing at 6.24, up 1.77 on 25.6 million.

Human Genome Sciences (HGSI) gained 1.08 to 28.97.

Among the fractional moves, Sourcefire (FIRE) advanced 90 cents to 22.16, and Brigham Exploration (BEXP) reached 11.45, a new 52-week high, closing at 11.19, up 50 cents.

Sonic Solutions (SNIC) added 85 cents to 9.90.

Stepping back and reviewing the hourly chart patterns, the indices were up sharply in the first hour, meandered higher, and then rolled over with about an hour to go, only to snapback in the last 20 minutes to close on a positive note.

Good trading!

Harry

Harry Boxer is an award-winning, widely syndicated technical analyst and author of The Technical Trader (www.thetechtrader.com), which features a real-time diary of Harry's minute-by-minute trades and market insights, plus annotated technical charts & stock picks, based on Harry's nearly 40 years experience as a Wall Street technical analyst.

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