RealTime IT News

Rally Fades

A strong rally on Monday faded by the close, as technology earnings and terrorism concerns worried traders.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 2 to 112, and the Nasdaq lost 4 to 1530. The S&P 500 added 3 to 1030, and the Dow rose 55 to 9645. Volume declined to 1.22 billion shares on the NYSE, and 1.51 billion on the Nasdaq. Advancers led 16 to 15 on the NYSE, but decliners led 18 to 15 on the Nasdaq.

After the close, Register.com's CFO resigned to pursue other interests.

During the day, Nokia slipped to a new 52-week low ahead of a mid-quarter update tomorrow morning.

Amazon.com fell on a Barron's article questioning the company's valuation.

Intel continued to slide after last week's warning, and IBM , which some expect to warn, traded lower too.

Priceline gained 15% on an upgrade.

Cree gained 15% after raising guidance.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.

A pretty weak-looking rally so far, with the indexes getting nowhere near the real resistance levels of 9800 on the Dow (first chart), 1049-1054 on the S&P (second chart) and 1595-1607 on the Nasdaq (third chart). The Dow has done a little better, getting above 9600 and 9635 resistance, but the S&P hasn't been able to take out 1033 or the Nasdaq 1560. Critical support is 9472 on the Dow, 1012 on the S&P, and 1495 on the Nasdaq. Even gold stocks continue to look weak here, with the HUI, the gold stock index, falling out of an upchannel today (fourth chart). 72-73 on the XAU, the gold and silver index (fifth chart), is the last near-term hope for gold bulls here.

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