STOCKS INDEXES SCORE UPSIDE REVERSAL NEAR AUGUST LOWS AND 200-DAY LINES -- TECHNOLOGY STOCKS LEAD NASDAQ REBOUND -- ALL ELEVEN SECTORS GAIN -- BUT STOCK INDEXES NEED MORE UPSIDE FOLLOW-THROUGH TO BUILD ON TODAY'S SUCCESSFUL TEST OF SUPPORT

MAJOR STOCK INDEXES BOUNCE OFF CHART SUPPORT... After trading sharply lower today, stocks reversed upward to score a potential upside reversal day.  And they did it at some critical support levels.  Chart 1 shows the Dow Industrials bouncing off their 200-day moving average and chart support near their August lows.   In addition, its 9-day RSI line (upper box) also rebounded from a short-term oversold reading below 30.  The two other major stocks indexes acted in similar fashion.  Chart 2 shows the S&P 500 reversing upward from chart support near its August low.  Chart 3 shows the Nasdaq Composite Index bouncing off its 200-day line and its August low.  That was probably the most important test of all.  That's because the tech-dominated Nasdaq has been leading the stock retreat over the last two weeks.  And it was today's biggest percentage gainer.

Technology stocks led the day's rebound led by stronger semiconductor stocks.   All eleven sectors gained ground.   The market has reached an important chart juncture.   After failing to clear their July highs during September, they've fallen back to their August lows.   That's a very important test.   The summer lows (and the 200-day lines) need to hold to keep the market's uptrend intact.  While today's upside reversal was encouraging, the major market indexes need to show more upside follow-through to build on today's successful test. Two overhead obstacles they'll need to clear are yesterday's downside gap and their 50-day moving averages.