Box Resistance

(TLAB | Quote | Chart | News | PowerRating)'s day was a much better performance by the retail than (ORCL | Quote | Chart | News | PowerRating) was. The Nasdaq 100 (NDX | Quote | Chart | News | PowerRating) opened down 20 points, just below Wednesday's 1657 low, then reversed the low, and ran up to 1717 by 11:05 a.m. From there, the second trend of the day took it down to 1662 -- just so no one would get too over-confident. And then we got the afternoon delight from 2:00 p.m. into the close, with the NDX running up to a new intraday high of 1723, closing at 1721.56.

Unlike the NDX, the S&P 500 (SPX | Quote | Chart | News | PowerRating) didn't take out the previous day's low, but couldn't take out that 1226 number for the second time in succession. Looking at your five-minute charts, you will see the three peaks at the 1226 level. You definitely want to use 1226 as your upside pivot today, as the fourth time usually leads to a good pop. 

Maybe it gives us a run right to the 1246 breakdown number and right into the 1250 - 1260 box of resistance. For the SPX to avoid dropping down to at least the 1170 - 1180 level, it must take out this box resistance and then the 1286.62 swingpoint high -- when every classical pattern watcher will scream, "head-and-shoulder pattern failure!"

The volume picked up with 1.3 billion on the NYSE, but the volume ratio was only 54 while advancers led decliners by +554. The Nasdaq's volume ratio was also 54 with only +111 advancers over decliners. The volume ratios indicate less-than-a-unanimous decision yesterday.

The NDX has its primary box of resistance from 1768 to the 50-day EMA at 1837. If there is failure at this zone, the NDX could very easily give us a flashdance down to the 1626 - 1504 zone. The six-month report card is June month end and the FOMC meeting the 26th and 27th. Unless the semis pick up again, I don't think the Generals can hold the line through month end.

Yesterday, two of our three components that I expect to lead us to any sustained move had good days -- the biotechs and financials. On the other hand, the semis looked awful but a little green did show up late in the day, so there is some light for today. It's all about chips, curing diseases, and cheap money -- not some union making garments in East Osh Kosh.

Stocks Today

In the semis: (NVLS | Quote | Chart | News | PowerRating), (KLAC | Quote | Chart | News | PowerRating) and (NVDA | Quote | Chart | News | PowerRating).

In the biotechs: (GENZ | Quote | Chart | News | PowerRating), (CHIR | Quote | Chart | News | PowerRating), (ABGX | Quote | Chart | News | PowerRating), (HGSI | Quote | Chart | News | PowerRating) and (MEDI | Quote | Chart | News | PowerRating).

In the financials: (PVN | Quote | Chart | News | PowerRating), (WFC | Quote | Chart | News | PowerRating), (COF | Quote | Chart | News | PowerRating), (MTG | Quote | Chart | News | PowerRating), (AIG | Quote | Chart | News | PowerRating), (CF | Quote | Chart | News | PowerRating) and (FITB | Quote | Chart | News | PowerRating).

Other stocks to focus on are: (UNH | Quote | Chart | News | PowerRating), (FRX | Quote | Chart | News | PowerRating), (WPI | Quote | Chart | News | PowerRating), (GCI | Quote | Chart | News | PowerRating), (GD | Quote | Chart | News | PowerRating), (AGN | Quote | Chart | News | PowerRating), (VIAB | Quote | Chart | News | PowerRating), (AOL | Quote | Chart | News | PowerRating), (HDI | Quote | Chart | News | PowerRating), (AAPL | Quote | Chart | News | PowerRating), (NEWP | Quote | Chart | News | PowerRating), (SLR | Quote | Chart | News | PowerRating) and (SYMC | Quote | Chart | News | PowerRating).

Have a good trading day.

Wednesday's NYSE TICK five-minute chart