The stock market indices had a tremendous rally in the last hour that brought them back into the green, but the day started out quite negatively in down channels where they went all day, making new lows for the pullback on the NDX near 2672. The S&P 500 dropped all the way down to 1422, and in the last couple hours, bounced to resistance, backed off and formed a right handed extended V-pattern. When the last pullback held, they then took off and then accelerated. Short covering set in late in the session, with the NDX jumping from 2672 to 2698, and the S&P 500 from 1422 to 1434. They backed off just a tad into the close. Net on the day, the Dow was up 2.38 at 13,345.89, 90 points off the low. The S&P 500 was up .62 at 1433.81, nearly 12 points off its low. The Nasdaq 100 up 16.24 at 2694.56, 23 points off its low. Advance-declines were negative by only 75 issues on the New York Stock Exchange, and about 13 issues on Nasdaq. Up/down volume had a slight plurality to the downside on New York, with total volume of 610 million shares. Nasdaq traded over 1.6 billion, and had a slight plurality to the upside. TheTechTrader.com board was unusually mixed, and Apple Inc. (AAPL) was by far the star today, up 24.19 to 634.03, as they will debuting their mini-pad tomorrow. They were 24 points off the low and just a point off the high. Peabody Energy Corp. (BTU) was up 3.06 to 28.95, on 34 million shares. Netflix, Inc. (NFLX) jumped 2.90 to 67.88 after they announced that they are moving into seven new countries, including Asia. Other gainers of note included SUPERVALU Inc. (SVU), on rumors of a takeover, up 96 cents to 3.15, or 45%, on 57 million shares. ZIOPHARM Oncology, Inc. (ZIOP) gained 67 cents to 5.02, or 15%, on 2 million shares. Cyclacel Pharmaceuticals, Inc. (CYCC) advanced 54 cents to 5.76, or 10%. PetMed Express, Inc. (PETS) jumped 1.05 to 11.15, Affymax, Inc. (AFFY) 1.82 to 26.29, Volcano Corporation (VOLC) 1.89 to 28.74, Koninklijke Philips Electronics NV (PHG) 1.63 to 26.23, and OpenTable, Inc. (OPEN), on a takeover rumor, 2.77 to 46.36. OM Group Inc. (OMG) gained 1.23 to 20.77, Nationstar Mortgage Holdings Inc. (NSM) 1.76 to 34.34, and Questcor Pharmaceutical (QCOR) 1.28 to 26.27. The coal sector was strong today. Arch Coal Inc. (ACI) was up 50 cents to 8.41, James River Coal Co. (JRCC) gained 31 cents to 5.31, and Alpha Natural Resources, Inc. (ANR) jumped 51 cents to 9.48. On the downside today, Amazon.com Inc. (AMZN) lost 6.22 to 233.78 and struggled most of the session. Ellie Mae, Inc. (ELLI) was down 1.40 to 23.50, and Google Inc. (GOOG) lost 3.12 to 678.67, also trailing today, but it was 9 points off its low. Stepping back and reviewing the hourly chart patterns, the indices jumped early, backed off, made new highs early in the session, but then came down in a 3-wave decline from those highs and spiked down into the lows just after the lunch hour. They then snapped back in a big late rally, putting the indices back in the plus column, which was not a surprise since they were extremely oversold. We’ll see what kind of follow-through we get tomorrow. Good Trading! Harry