RealTime IT News

Stocks Edge Higher

Stocks began Monday on a down note, but recovered to end the day higher in light trade.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 4 to 178, and the Nasdaq was unchanged at 1929. The S&P 500 added 3 to 1168, and the Dow climbed 38 to 10,611. Volume declined to 1.2 billion shares on the NYSE, and 1.8 billion on the Nasdaq. Advancers led 16 to 15 on the NYSE, and 19 to 16 on the Nasdaq.

After the close, Cisco slipped on its SEC filing, but IBM edged higher on its filing.

During the day, Nokia lost 2% ahead of a mid-quarter update tomorrow morning.

Ciena surged 11% on an upgrade and takeover rumors. Sonus and ONI also surged on upgrades.

Juniper continued to shake off downgrades and other concerns, rising 10% on double average volume.

Priceline gained 8% on news that Prince Alwaleed has purchased another $100 million of the company's stock.

Emulex fell 8% on a Bank of America estimate reduction.

Microsoft managed to close above its 200-day moving average at 64.08.

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 S&P (first chart) is so far holding the higher of last week's two downtrend line breakouts at 1155-1160, a plus for the bulls. Below that, 1140 looks like the next strong support. The SOX (second chart), the semiconductor index, looks like the recent highs may have hit a downtrend line. 580-590 looks like very strong support at this point. The Dow weekly (third chart) faces a ton of resistance from 10,650-10,800. If it can get through that, that would be something. In the Dow daily (fourth chart), the index continues to hover around the upper trendline of what could be a broadening top; if it can clear that and keep going, that would be bullish. A move below 10,550 could signal the start of a correction. The S&P daily (fifth chart) has resistance at 1173-1177 and support at 1150-1155. The Nasdaq (sixth chart) is back at 1934-1940 resistance, and 1960 is above that. Support is 1904, 1895, 1880 and 1850. Finally, the charts look like this rally could have another leg up in it, potentially as high as the May 2001 highs of 1300 on the S&P and 2300 on the Nasdaq. However, sentiment readings are toppy and urge caution; at the minimum, a pullback in the next week to 10 days is not only possible, but likely, particularly given that this is a quarterly options expiration week. Hopefully fear will be quick to spike on any pullback.

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