The tone on option expiration Friday was generally positive. Thus far it has been a relatively quiet day without any significant economic news. Technology stocks were stronger thanks to leadership in stocks like Apple (AAPL) and Microsoft (MSFT). Investors were ignoring the latest unemployment numbers from individual states, many of which hit new highs.

Friday was a quiet session overseas as well. Asian markets were higher. The Chinese Shanghai index (+0.9%) is up three days in a row and nearing 11-month highs. The Hong Kong Hang Seng (+0.8%) ended a four-day losing streak. One week ago the Japanese NIKKEI was making headlines with a bullish breakout over round-number resistance at the 10,000 mark. This week the Japanese market has fallen about 3.5% marking the worst week in three months. Today the NIKKEI gained 0.8%.

Europe was trending higher although the German markets were just barely in positive territory. The International Monetary Fund (IMF) said they might raise their 2010 global growth forecast if the economic data continues to improve (no surprise there!). There was a financial summit in Brussels where EU leaders claim that the current stimulus in the system appears to be enough and further government stimulus will not be needed. At the end of the day the German DAX rose 0.04%. The French CAC-40 rose 0.8%. The English FTSE rallied 1.5%.

Here at home the rally is suddenly taking a turn for the worse. In just the last few minutes the Dow Jones Industrials have turned negative and the NASDAQ composite is paring its gains. U.S. dollar weakness was helping boost commodity and material stocks. Some of the strongest sectors today appear to be healthcare, railroads, and the gambling industry.

There was plenty of individual corporate news. Last night Research In Motion (RIMM) the maker of the popular Blackberry smart phones reported earnings. The results were better than expected but investors sold the news anyway. The stock spiked lower toward $71.00 in after hours last night. Today shares are down 4.3% near $73.25 and appear to be breaking through technical support at the rising 50-dma. One analyst firm raised their price target on RIMM to $110 following the earnings report. Rival smartphone maker Apple Inc. (AAPL) is up 1.1% near $137.50 but off its highs near $139 this morning. AAPL is launching their latest iPhone model the 3GS. The "S" stands for speed. Hundreds of consumers were lined up this morning to get their hands on the latest iPhone. AAPL and AT&T said lines were smaller because they pre-sold hundreds of thousands of units to alleviate the launch-day crush of consumers. Smaller rival Palm Inc. (PALM), who recently launched their PRE smartphone is up 9.6% on the session.

Dow-component and NASDAQ heavy-weight Microsoft (MSFT) made headlines after Goldman Sachs (GS) put MSFT on their "conviction buy" list this morning. Shares of MSFT have been soaring with the stock up four weeks in a row with almost no profit taking. The rally is looking a little long in the tooth but MSFT is up another 2.2% today and hitting new relative highs.

Don't eat the cookie dough! Nestle USA, the American arm of the global food giant, issued a voluntary recall of Toll House refrigerated cookie dough. The FDA and the CDC suspect that more than 60 people have fallen ill due to potential E. coli bacteria in the uncooked dough. The FDA is suggesting consumers to throw away any Toll House cookie dough products and not to try and cook them. It's worth noting that those consumers who fell ill ate the dough raw instead of cooking it. The list of items to throw away appears to cover all Toll House cookie dough products but not any ice cream products that might have cookie dough in them.

In economic news today the Labor Department said that 48 states experienced a rise in unemployment in May. Several states set new record highs. Michigan's unemployment hit 14.1% due to the auto industry layoffs. California's unemployment hit 11.5%.

Currently the S&P 500 index is up 0.1% and hovering around the 920 level. The NASDAQ Composite is up 0.9% at 1825 and testing short-term overhead resistance at the 10-dma. The Dow Industrials are negative with a 0.1% decline near 8541. The Russell 2000 is up 0.7% but also pulling back from a test of its 10-dma.

Let's take a quick look at charts for the major averages:

Chart of the S&P 500:

Chart of the NASDAQ:

Chart of the Dow Industrials:

Chart of the Russell 2000 index:

Scanning the play list I see that AMZN continues to bounce. The stock is up 1.5% as traders buy the dip. BDX is trying to breakout over resistance at $70.00 and its 200-dma but hasn't quite succeeded yet. Our trigger to buy calls is $70.51. Mastercard (MA) is sinking toward round-number support at $160. The stock is breaking down under its 100-dma and could break its longer-term bullish channel. LLL, an OI put play, has produced another failed rally this morning.