RealTime IT News

Stocks Finally Bounce

Blue chips dragged tech stocks higher on Wednesday, as buyers emerged after two sharp down days for the market.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 1 to 195, and the Nasdaq climbed 25 to 1984. The S&P 500 rose 18 to 1190, and the Dow surged 164 to 10,405. Volume was unchanged at 1.2 billion shares on the NYSE, and rose slightly to 1.6 billion on the Nasdaq. Advancers led 18 to 11 on the NYSE, and 19 to 17 on the Nasdaq. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.

It was one heck of a busy after hours session. Homestore.com , GoTo.com , and Corning rose on better-than-expected results. But Netegrity , Compaq , Vignette and Digital Insight slipped on their results.

During the day, QLogic dropped 6.20 to 34.54 after missing revenue estimates. InfoSpace plunged 1.19 to 2.14 after lowering guidance.

PeopleSoft , Peregrine and Ticketmaster each surged more than 10% on better-than-expected results. Digital River slipped .32 to 4.80 despite topping estimates.

Cisco rose after announcing a new high-end router strategy, while Juniper fell.

Sun Microsystems rose .59 to 15.49 on Merrill Lynch comments that demand has firmed.

i2 , off 1.69 to 8.60, continued it free fall in the wake of a senior official's resignation. Analysts have been slashing estimates on the stock.

Some technical comments on the market: Note: We include charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

The market took a step back from the brink today, a good thing, but the major indexes all finished with inconclusive "inside days": today's highs were lower than yesterday's, and the lows were higher than yesterday. No hint on the next move whatsoever there. However, it wouldn't take much of a move up tomorrow to take out yesterday's highs. TRIN, a good measure of buying pressure on the NYSE, was below the important .80 level most of the day, a good sign for the old economy stocks. But the Nasdaq (TRINQ) was above the .80 level most of the day, showing some weakness in tech. (To track TRIN readings, go to StockCharts.com and type in $TRIN for the NYSE, and $TRINQ for the Nasdaq.) The Nasdaq (first chart) is right in no man's land, with important resistance at about 2030 (the blue line) and support at 1934 and 1900 (the black line). 2000 is first support. The S&P 500 (second chart) has a boatload of resistance between here and 1200; a move above that level would be hopeful. 1155-1165 is critical support. The Dow (third chart) must hold the 10,120-10,226 area, and a move above 10,430-10,475 would be a plus. Finally, a link to one very interesting chart pattern in the S&P 500 noticed by a veteran trader recently: http://stockcharts.com/snapshots/1113524.png. An uncanny rounding top on the S&P, beginning with the big blow-off top that began in October 1999. It looks per that chart like the next couple of weeks are break or bottom time for the S&P 500. A move above 1215 this week and 1200 next week would look awfully bullish per that chart. Wait for the break out, though; odds are just as high, if not higher, that that pattern will result in a break down.

Special report: For a free introduction to technical chart patterns and an overview of last year's action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.