RealTime IT News

Bulls Bounce Back

Stocks soared on Monday, as buyers showed up in force following last week's steep plunge.

The ISDEX soared 8 to 121, and the Nasdaq surged 76 to 1499. The S&P 500 rose 37 to 1003, and the Dow stormed ahead 368 to 8603. Volume declined to 1.7 billion shares on the NYSE, and 2 billion on the Nasdaq. Advancers led 24 to 8 on the NYSE, and 27 to 11 on the Nasdaq. For earnings reports, visit our earnings calendar at and reported earnings at For after hours quotes and news, visit our after hours trading site at

After the close, AOL Time Warner slipped after issuing an earnings warning. Real Networks issued a stock buyback.

During the day, big-cap stocks like EMC , Sun , Oracle and Nokia led the charge.

Semiconductor stocks were strong, led by Intel , which soared 2.10 to 21.40. However, leading equipment stocks like Applied Materials and KLA-Tencor lagged.

VeriSign rose 1.41 to 39.71 after initially declining on news that it will acquire Illuminet .

JDS Uniphase surged 1.01 to 6.37 on a CIBC Buy rating despite issuing a revenue warning. blossomed .88 to 10.89 after reaffirming guidance.

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:

On a generally positive day, we'll start with two negatives. First, volume was light, which means that today's rally may be just a countertrend move. And second, the structure of the rally, particularly in the Dow and S&P 500 (see first two charts below) appears to be more of a bear flag than a genuinely bullish move, so more downside may yet be in store. On the Dow, critical support is 8440, and key resistance is 8750-8800, the index's old trading range (see third chart below). On the S&P, 985 is critical support, and 1010 is first resistance. On the Nasdaq (fourth chart), 1488 is first support, and 1459 is critical support, the top of today's gap up. 1500-1525 is first resistance. One plus was the strong buying in the economically sensitive sectors today - the banking index, the cyclicals, the Transports and the semiconductors all posted strong gains. But one other negative was that the options put-call ratio fell by more than half after Friday's record close; it would have been nice to have seen a little less belief in today's rally.

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