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RealTime IT News

Tech Stocks Lead Market Higher

Stocks rebounded Wednesday on positive outlooks from technology companies.

The Nasdaq rose 28 to 1292, the S&P 500 climbed 15 to 893, and the Dow climbed 117 to 8425. Volume rose to 1.35 billion shares on the NYSE, and 1.49 billion on the Nasdaq. Advancers led 22 to 9 on the NYSE, and 22 to 12 on the Nasdaq.

QLogic gained 4.5% after saying results will come in at the high end of guidance.

LSI Logic and Texas Instruments rose after reaffirming guidance.

Symantec surged 11% on bullish comments from CS First Boston.

National Semi rose 1.5% after matching estimates but warning.

Intel rose 1.6% ahead of the company's mid-quarter update tomorrow after the close. The company is widely expected to guide lower.

EMC rose 8% on news that it will team with Dell on a low-end storage product.

Fairchild Semi rose 1% despite warning.

Applied Materials , off 2%, hit a new 52-week low.

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) broke critical 1263 support today, but then recovered. If the index can get above 1302-1303 tomorrow, 1314 is next resistance and then 1340. The SOX (second chart), the semiconductor index, hit a new low today before recovering, and remains mired in a steep downtrend. Not a good sign for the techs if the semis can't get going. The S&P (third chart) faces tough chart resistance just above 900 (907 is also Fibonacci resistance), and 875 is support. The Dow (fourth chart) faces a ton of resistance at 8550, and 8200 is the first strong support. Finally, yesterday was a 90% downside day for the NYSE, but the Nasdaq was missing one key ingredient, according to Paul Desmond of Lowry's Reports: Points lost on the Nasdaq totaled only 88.5%, so the Nasdaq had 90% downside volume, but not 90% points lost. The NYSE met both qualifications for a downside day. Bear market bottoms have historically been formed on a string of 90% downside days, so a second such day would be a sign that the capitulation phase has begun. The average number of 90% downside days at bear market bottoms is five, according to Desmond's landmark study.

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