Momentum from Friday’s strong gains carried over into Monday, as the Dow posted another 200 point gain and the rest of the market followed.
The ISDEX http://www.wsrn.com/apps/ISDEX/ soared 11 to 165, and the Nasdaq surged 56 to 1859. The S&P 500 rose 22 to 1153, and the Dow surged 217 to 10,586. Volume rose to 1.6 billion shares on the NYSE, and 2.3 billion on the Nasdaq. Advancers led 22 to 9 on the NYSE, and 23 to 12 on the Nasdaq.
Oracle was left out of the party, plunging 14% after issuing an earnings warning.
Sun Microsystems lost 3% on Merrill Lynch comments that the company may have a soft quarter.
Manugistics soared 20% after preannouncing better than expected results. Other 20% gainers included RealNetworks
and Digital River
.
Yahoo rose 7% on a CIBC upgrade, and eBay
gained 8% on an upgrade.
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.
Some nice price action in the market here. The Dow (first chart) and XMI (second chart) are staging some impressive breakouts. However, if 10,550-10,560 doesn’t hold, the Dow could easily pull back to 10,300-10,380. Support on the XMI should now be 1065, and resistance is about 1085 and then 1110-1130. The S&P (third chart) looks like it could retest the 1173-1177 highs, while the S&P 100 (fourth chart) is coming up on tough resistance in the 590-600 area. Support on the S&P is 1150 and 1133-1140. The Nasdaq (fifth chart) is coming up on 1880 resistance, and 1850 is first support. Below 1850, 1805 and 1780 are support. The SOX, the semiconductor index, is right under a very critical trendline (sixth chart), and Intel is right at a head and shoulders neckline (seventh chart). A lot of resistance coming up for the chips. One negative here is the internals; up-down volume was at its poorest the last two days for the start of any rally since the September lows. But price looks pointed higher in the near-term if the market can head up again tomorrow. And another day like the last two would be downright bullish.
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