Stock Market Rally Remains Resilient

Stock-Markets / Stock Index Trading Mar 27, 2009 - 01:07 AM GMT

The indices had another very strong session and continue to act resiliently as the rally extends to 2 1/2 weeks. Yesterday's intraday sharp sell-off and late rally carried over as the indices gapped up at the opening, pulled back and retested the gap but held, and then the rally was on. They moved in a steady chop higher until mid-session when they finally pulled back, retested, but held support mid-afternoon. That resulted in a late snapback to close them near the highs for the day.

Net on the day the Dow was up 175 to 7924.56, the S&P 500 nearly 19 to 832.86, and the Nasdaq 100 up 44.64 to 1281.30. The Philadelphia Semiconductor Index (SOXX) jumped 13.68 to 245.17.

Advance-declines were 4 to 1 positive, with 2441 to 614, on New York, and even more than that on Nasdaq, at 2256 to 521.

Up/down volume was very strong as well, with 1.3 billion and 480 million down on New York, a more than 2 ½ to 1 ratio, on total volume of a hefty 1.8-plus billion. Nasdaq traded over 2.6 billion, with 2.49 billion to the upside, a more than 17 to 1 positive volume ratio.

TheTechTrader.com board a result was very strong, with multiple-point gainers abounding. Leading the way was Potash (POT), up 5.78 to 89.30. in that same group, Mosaic (MOS) at 48.20 was up 2.73, and Agrium (AGU) moved up 66 cents to 39.90.

Apple (AAPL) was up 3.38 to 109.87, and Best Buy (BBY) up 4.21 to 37.66 on an excellent earnings report.

Solar energy stocks had a strong session on word of support from China. SunPower (SPWR) was up 2.64 to 26.68, yet that was $3 off is high. Energy Conversion Devices (ENER) jumped 1.89 to 16.45, and that was a point off its high. Canadian Solar (CSIQ) was up 1.33 to 6.16 on 4 million, trading as high as 6.40 at one point.

Chart of the Day American Italian Pasta (AIPC) gained 1.71 to 35.08. The iShares FTSE/Xinhua China 25 Index (FXI) was up 1.52 to 30.16, and the Direxion Large Cap Bull 3X Shares (BGU) at 26.08 was up 1.68. The U.S. Oil Fund ETF (USO) closed at 32.02, up 81 cents.

Cree Inc.(CREE) was up 1.04 to 24.53, Amazon (AMZN) up 1.29 to 73.69, portfolio position Akamai (AKAM) up 92 cents to 20.35, and Aluminum Corp. of China (ACH) up 93 cents to 17.13.

Portfolio position DG FastChannel (DGIT) was up 28 cents to 19.20, reaching as high as 19.90, a new 6-month high.

General Electric (GE) gained 41 cents to 10.90. Portfolio position Net 1 Ueps Technologies (UEPS) was up 96 cents to 15.63.

On the downside, the UltraShort Real Estate ProShares (SRS) was down 3.10 to 50.38, and the Direxion Large Cap Bear 3X Shares (BGZ) fell 4.25 to 55.85. The Direxion Financial Bear 3x Shares (FAZ) lost 82 cents to 18.64.

Stepping back and reviewing the hourly chart patterns, the indices surged ahead, took out key overhead resistance, and kept going, closing at the highs for the day, extending the rally, which is now almost 1500 points off the lows on the Dow & 167 on the SPX in just 2 1/2 weeks.

They're very much extended and overbought (McClellan Oscillator +293), and I do expect this rally to end shortly, but momentum is strong and the trend has not been broken yet.

Good trading!

Harry

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