Stocks Bounce Back

Stocks recovered from another steep sell-off Tuesday on rumors of a truce between India and Pakistan, but weak auto sales and earnings warnings limited the rally.

The ISDEX http://www.wsrn.com/apps/ISDEX/ rose 1 to 117, and the Nasdaq climbed 15 to 1578. The S&P 500 was unchanged at 1040, and the Dow slipped 21 to 9687. Volume rose to 1.48 billion shares on the NYSE, and 1.86 billion on the Nasdaq. Decliners led 17 to 14 on the NYSE, and 18 to 15 on the Nasdaq.

After the close, Synopsis , TIBCO and eFunds warned. eFunds announced the departure of its CFO.

During the day, Flextronics fell 20% on a warning.

Hewlett-Packard rose despite company comments that business remains tough.

Oracle gained 7% on Sanford Bernstein comments that an earnings warning is priced in.

EMC rose 5% on a SoundView upgrade.

Brocade and Check Point gained 8-9% on positive company guidance.

FreeMarkets gained 9% on a Bear Stearns Buy rating.

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 500 (first chart) put in a doji today, trading higher and lower only to end the day unchanged, a potential reversal sign if followed through with an up day tomorrow. However, the 1049-1054 area looks like very tough resistance, and every rally lately has been met by selling. 1030, 1015 and 995 are support. The Dow (second chart) has support at 9590 and 9500, and resistance at 9800 and 9900. The Nasdaq (third chart) faces very tough resistance at 1600-1610, and support is 1560, 1548 and 1507-1528.

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