NASDAQ Technical Picture - Solid Extension

It's hard to tell from the chart but today's volume was above average and higher than yesterday so this extension looks like an accumulation day. Haven't had one of those in a while. We achieved new recovery highs in the last hour of trade, but a late day dip trimmed the gains. We're coming into some resistance so it'll be interesting to see if we can follow through for a third straight up session tomorrow. I'm not holding my breath.

FED policy makers left rates unchanged at 5.25% for a ninth straight time. Even though the market was unrealistically optimistic about the Fed coming to Wall Street's credit crunch rescue, the academics only acknowledged the tightening credit conditions. Somehow this was eventually viewed as a net positive after the initial knee jerk down movement.

Companies moving in after hours trading in reaction to earnings: Trading Up: BITS +15.1%; PCR +15.1%; PACR +14.9%; NSIT +11.5%; PCLN +9.7%; LXU +7.7%; UNTD +7.7%; HSTX +6.9%; QMAR +6.8%; TTGT +6.7%; CSCO +5.9%; ALJ +5.7%; GB +5.6%; JRT +5.5%; BIO +5.6%; ESE +5.4%; TRID +5.1%; FLR +3.6%; KNOL +3.4%; MDR +3.3%; CSPI +3.1%; COGO +2.8%; TRLG +2.3%; GSS +1.5%; ENOC +1.3%; OPMR +1.2%; FST +1.1%; ZIXI +1.0%; MSSR +1.0%... Trading Down: HLYS -30.0%; SMTX -25.9%; LEAP -14.5%; MVSN -7.3%; SONS -6.2%; MBLX -5.0%; SCI -4.8%; SOMX -4.6%; UTI -4.6%; MLR -4.2%; MDRX -4.1%; DRRX -3.4%; EGLE -3.0%; KND -2.9%; DEEP -2.9%; GTRC -2.7%; HCC -2.6%; SGTL -2.6%; NGAS -2.3%; CREE -1.8%; ONXX -1.4%; RAH -1.4%; ATO -1.3%; GOLF -1.1%... Companies moving in reaction to news: Trading Up: MTMD +27.9% (being acquired by Ecolab for $6.30/share; ECL reaffirms FY07 EPS guidance); RDN +18.2% (provides update on status of MGIC merger); ANH +15.5% (filed its Quarterly Report on Form 10-Q and Provides Update on Subsequent E); HANS +2.2% (SEC completes investigation of Hansen Natural); CRZ +2.0% (announces 2 mln share stock repurchase plan); JBX +1.9% (announces 2-for-1 stock split, subject to stockholder approval of increase in authorized common stock); PNCL +1.2% (releases July traffic)... Trading Down: NEXC -6.1% (provides quarterly operations update noting an 89% drilling success rate and an 115 production increase over the previous quarter); BRNC -2.0% (names new Chairman); EPEX -1.9% (provides quarterly operations update noting an 89% drilling success rate and an 115 production increase over the previous quarter); HTBK -1.7% (Board of Directors approves $30 mln stock repurchase plan); KAMN -1.4% (named President and COO of Kaman Corporation); BOBE -1.1% (announces 2-for-1 stock split, subject to stockholder approval of increase in authorized common); GM -1.0% (Russian tycoon buys GM stake -- FT).