RealTime IT News

Stocks Bounce Back

Stocks overcame a sell-off on negative economic data and downgrades on Thursday to end the day mixed.

The Nasdaq rose 21 to 1335, the S&P 500 was unchanged at 917, and the Dow slipped 23 to 8670. Volume rose to 1.18 billion shares on the NYSE, and 1.43 billion on the Nasdaq. Advancers led 18 to 13 on the NYSE, and 18 to 13 on the Nasdaq.

After the close, Sun Microsystems and Novellus warned. Flextronics reaffirmed guidance.

During the day, Yahoo rebounded 12% the day after Softbank sold 30 million shares in private and open market sales.

Neoware hit a new high before reversing to close down.

Kronos lost 3% on comments that the company may be overstating revenues by 10%.

Micron lost 3% on a downgrade.

Wind River soared 25% on a deal with Intel .

Liberate fell 7% on a warning, while TriQuint rose 1% after reaffirming 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.

The Nasdaq (first chart below) bounced at 1290-1296 support today, but then was stopped at the low end of 1345-1360 resistance. Between those levels the index may be stuck in a range. Below 1290, 1263 is critical support, and 1388 is significant resistance. The S&P (second chart) stopped just above the minimum downside target of 897, finding support at 903. 914-915 is first support, and 930 is major resistance. The Dow (third chart) has very tough resistance at 8760. Support is 8500, 8350, 8200 and 8000. The Dow Transports (fourth chart) formed the bearish "three black crows" candlestick pattern the last three days, signaling more potential downside ahead for that important index. On the plus side, the put-call ratio remains relatively high at 0.94, so downside may be limited for now.

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