RealTime IT News

Stocks Stage Reversal

Investors shook off accounting worries on Wednesday to send stocks higher in a high-volume reversal.

The ISDEX http://www.wsrn.com/apps/ISDEX/ gained 1 to 148, and the Nasdaq rose 24 to 1775. The S&P 500 gained 14 to 1097, and the Dow rose 196 to 9941. Volume rose to 1.4 billion shares on the NYSE, and 1.9 billion on the Nasdaq. Advancers led 18 to 12 on the NYSE, and 19 to 15 on the Nasdaq.

After the close, IBM said 2002 will be a tough year for the tech sector. Synopsis warned.

During the day, Computer Associates plunged 17% on accounting concerns, an old issue for the company.

TMP fell 11% on a warning, but Agilent rose 10% on better than expected results.

Overture fell 10% on continued competition from Google.

Qualcomm continued to come under pressure, but once again found support at the 34.50 level.

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 nice reversal today, but the internals weren't overwhelming. Still, it could be good for a rally for a few days, but the preferred scenario remains for a late March low. The Dow (first chart) still appears to be in a wave 2 or B, and looks like it needs at least one more leg down before the correction is complete. Support should now be 9900-9915, and resistance is 10,000 and then 10,060. 10,120-10,130 is after that. The S&P 500 and 100 (second and third charts) narrowly avoided breakdowns today. The S&P closed right at 1098-1103 resistance, and 1107 is after that, followed by 1112. 1092-1096 is first support, and 1085 is below that. The Nasdaq (fourth chart) came within 9 points of our 1720 downside target for this leg. 1780, 1790 and 1800 is resistance, and 1768-1772 is first support.

Special report: For a free introduction to technical chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.