The indices started the week on a down note, the third consecutive down day for the indices, and closed going away at the lows for the day. 

The day started out with a move up, which was much more impressive on the blue chips.  Then they backed off a little bit but held minor support, and at that point bounced with blue chips making the highs for the day, and Nasdaq failed to confirm that.  Then they sold off, breaking 1600 on the NDX but holding 1226 support on S&P 500.  As a result of that positive divergence they tried to bounce, which failed at resistance, and for the rest of the session the indices stair-stepped lower.

Net on the day the Dow was down 21, the S&P down 3 1/4, the NDX down a little more than 11 1/2, and the SOX off about 5 1/3 and pressuring Nasdaq for most of the session.

The technicals were a little better than 2 to 1 negative on New York and 3 to 2 negative on Nasdaq.  Up/down volume was about 7 to 5 negative on New York and 9 to 5 negative on Nasdaq.  Total volume was about 1 1/3 on New York and a little less than 1 1/2 billion on Nasdaq.

TheTechTrader.com board was narrowly mixed except for a few outstanding issues.  A newcomer we followed today, Meadow Valley (MVCO), closed at 8.97, up 2.63 on 1.7 million, although that was about 1.50 off the earlier high.

DayStar Technologies (DSTI) was the standout in a positive alternative energy sector, up 1.38, with Evergreen Solar (ESLR) up 34 cents and Energy Conversion Devices (ENER) up 14 cents.  Most of those alternative energy stocks were up on a negative day on Wall Street.

Other stocks of note, Netflix (NFLX) advanced to a new 52-week high near 22, up 79 cents today, closing at 21.76.

On the downside, CryptoLogic (CRYP) continued its dive, moving below 24, closing at 23.88 down another 1.19 today.  Forward Industries (FORD) was off 50 cents, Able Energy (ABLE) 51 cents, and Internet Initiative Japan (IIJI) 52 cents.

In the large-cap sector, the QQQQ was off 29 cents and SMH 21 cents.

Stepping back and reviewing the hourly chart patterns, today's lows on the Nasdaq 100 slightly took out the late July reaction lows on the Nasdaq 100 as well as some of the reaction lows on the S&P 500, so the 1220 area is one I'd keep a close eye on for the S&P 500 as well as the 1580 zone on the Nasdaq 100.  I believe they're key short-term support levels that we may see a snapback off of and a retest of resistance.

Current resistance the Nasdaq 100 is at 1595 and then 1600, followed by the 1608 area.  S&P resistance currently at 1226, 1228 and then the 1232 area.

Good trading!

Harry Boxer is a technical consultant to many Wall Street hedge funds and large institutional traders, and author of TheTechTrader.com, a real-time diary of his day, swing and intermediate-term trades. For more of Harry Boxer, sign up for a FREE 15-day trial to his Real-Time Technical Trading Diary, or sign up for a Free 30-Day Trial to his Top Charts of the Week service.