The Nasdaq bounced at a key support level on Friday, and stocks staged a late rally on hope that Osama bin Laden will be caught. However, a top U.S. military official said after the close that the U.S. is not sure where the terrorist is hiding.
The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 1 to 178, and the Nasdaq added 6 to 1953 after finding support at its 200-day moving average at 1935. The S&P 500 rose 3 to 1123, and the Dow climbed 44 to 9811. Volume declined to 1.3 billion shares on the NYSE, and 1.88 billion on the Nasdaq. Advancers led 17 to 13 on the NYSE, and 18 to 17 on the Nasdaq.
Adobe rose 4% despite missing estimates and warning.
Oracle slipped by a dime to 14.57 after missing revenue estimates. Oracle called the quarter its “toughest in a decade.”
Broadcom rebounded from a 2-point loss after Intel
lost a patent infringement suit against the company.
Overture finished more than 2 points off its high, as investors took profits after the company issued a bullish outlook yesterday.
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 Nasdaq (first chart) held critical 1935 support today, as it should have on its first attempt. That number for today represented the 200-day moving average, the July/August lows (a tough resistance level on the way up), and a potential uptrend line from the September lows. That new trendline should be at about 1945 for Monday, and is probably a more important support than the 200-day moving average. Resistance is 1965-1968, and 1980-2000. And thanks to reader Steve Lewis for the next observation: The S&P 500 (second chart) may be forming a broadening top here. Ignore today’s spike down (a data glitch); that lower trendline held today, and should be at about 1112 on Monday. A break of that support would be bearish. First resistance is 1125-1128, which stopped the S&P’s advance today. The Dow (third chart) has support at 9736, 9700, and 9600. First resistance is 9850 and then 9900-9920.
Special report: For a free introduction to technical chart patterns and an overview of last year’s action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.
