Market Ends Up On Volatile Day

Stocks surged out of the gate on Wednesday, but gave back all their gains and then some before rallying back to close near the highs of the day.

The ISDEX finished up fractionally to 90, and the Nasdaq rose 21 to 1280. The S&P 500 climbed 17 to 876, and the Dow surged 182 to 8456. Volume declined to 1.47 billion shares on the NYSE, and 1.53 billion on the Nasdaq. Advancers led 20 to 11 on the NYSE, and 17 to 15 on the Nasdaq.

After the close, Wireless Facilities and Aether topped estimates.

During the day, Cisco rose 7% on results and guidance that weren’t as bad as feared.

United Online rose 15% after beating estimates, but WebMD slipped 2% after beating earnings estimates but missing revenue estimates.

TMP Worldwide plunged 32% on a warning, but Maxim gained 6% on a warning.

VeriSign fell 10% on news of an FTC investigation into the company’s marketing practices.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the story link at the top of the newsletter.

A wild day in the market today. The Nasdaq (first chart) formed some manner of doji star or hanging man today; the previous two times that similar candlesticks met the index’s downtrend line did not end well. Will this time be different? A move above 1300 tomorrow would look good, provided it holds. 1243 is first support. The Dow and S&P (second and third charts) look like bear flags on the intraday charts, setting up a potential repeat of the Thursday-Monday decline. 885 on the S&P and 8516 on the Dow are significant resistance levels, as are 911-920 and 8700-8760. Those potential bear flags would break down at about 8250-8300 on the Dow and 860-865 on the S&P, but 850 on the S&P and 8200 on the Dow are also potential supports.





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