Tech Leads, Nasdaq Gains 2.7%

Fundamental Take:
The Dow gained 95 points in another late-day rally driven by a surge in the technology sector. Technology stocks gained 3% with Hewlett-Packard leading the pack with a 5% jump after reports indicated that the company has edged out Dell as the largest U.S. computer maker. JP Morgan started the day with a positive tone for financials releasing its fourth quarter earnings report pre-market and handily beating investor expectation. First quarter earnings per share came in at 40 cents v. 32 cents consensus. Investment banking revenues poured in during the quarter accounting for $8.3 billion of the $26.9 billion total reversing the division's $302 million loss recorded last quarter. Jamie Dimon further encouraged investors stating that JP Morgan could pay back the TARP funds "tomorrow" but is awaiting direction from the Treasury. JPM rose 2.1% for the day. Stocks drifted through the morning but found a late-day bid with technology stocks rallying into the much anticipated Google earnings report. Google reported earnings per share of $5.16 vastly exceeding expectations of $4.07. GOOG ticked up slighly after the report's release having already rallied 57.2% off lows over the last 5 months.

Technical Take:
Stocks continued oscillating around the 8,000 level throughout the morning but found a strong bid later in the day to push to a new high for the recent rally off the March 6th bottom. This market is highly directional to the upside with a very strong bid to stocks. The market has yet to spend much time consolidating yet. Today's early action was a quick consolidation of yesterday's late-day advance and then the market pushed to new highs. The OIH advanced to the $88 level which may trigger the expected breakout outlined in our market commentary in the next few days. The VIX continues falling after breaking through the 40 area closing at 35.79 today. Early earnings reports have shown an easy ability for companies to beat as expecatations have been reduced to such low levels. As earnings reports roll in, stocks are finding upside.