The markets were weak in the morning. They based mid-day and then came on in the afternoon when they failed to break down, and did close strongly. In fact, the S&P 500 closed right near the high. The NDX wasn't far behind. So it was a mixed session at the close but a positive one, in that they didn't break down, and on several occasions held support near the morning lows and yesterday's lows.

At the close the Dow was up 44 points, about 160 points off its low. So a substantial recovery there. The S&P 500 as well jumped from 1469 to 1488, nearly 20 points, and closed up 1.82 on the session. So big losses were wiped out. The Nasdaq 100 came back 22 points but still ended down 6.68 on the day. The Philadelphia Semiconductor Index (SOXX) was down 4.77, weak most of the session.

The technicals were certainly lower, by more than 2 to 1 on advance-declines on New York, and 3 to 2 on Nasdaq. Up/down volume was nearly 2 to 1 negative on New York and 3 to 2 negative on declining volume over advancing volume on Nasdaq. Total volume was about 1.45 billion on New York and about 2.1 billion on Nasdaq.

TheTechTrader.com board ended narrowly mixed, with several strong gainers today. By far Rigel Pharmaceuticals (RIGL) was the BIG winner today. On very positive drug news it gapped up and ran all day, closing near the highs for the day going away, up nearly 18, on 37.7 million shares, a phenomenal day there.

Savient Pharmaceuticals (SVNT) also on positive drug news was up 2.63 on 19 million, and old favorite Dendreon (DNDN) was up 1.34, just under 7, on 21 1/2 million shares, on possible Senate action to get their drug approved.

Other stocks of note, FSIN was up 1.28, Eschelon Corp. (ELON) up 40 cents, and EMKR up 76 cents. Evergreen Solar (ESLR) was up 70c in regular trading ,another $1.40 in the after market on a contract announcement, portfolio position Luna Innovations (LUNA) up 35 cents, and Cardica (CRDC) was up 67 cents.

On the downside, China stocks got hit hard today. Aluminum Corp. of China (ACH) fell 3.04, China Natural Resources (CHNR) 2.71, China Finance Online (JRJC) down 1.62, Chindex (CHDX) down 75 cents, Global Solutions (GSOL) down 96 cents, and China Medical Technologies (CMED) down 1.16.

Shippers also got hit. DryShips (DRYS) fell 2.30, Excel Maritime (EXM) 2.34, and TBS International (TBSI) 1.25, all of them, however, off their lows in the afternoon rally.

Stepping back and reviewing the hourly chart patterns, the indices broke down yesterday but held those lows all day today, despite a couple of severe tests at mid-day, and managed to snap back in the last couple hours. But they closed right at declining moving average resistance on the hourly charts and also near the top of the 3-day declining channel, so we'll see if they can make any further upside progress.

It looked to me like a short-covering snapback rally occurred this afternoon. We still have a lot of resistance to overcome until we can say the trend is still higher. Right now, since the big break on Tuesday, the markets have moved lower and failed at resistance until this afternoon when they did finally break out. We’ll be watching short-term resistance at 2100 NDX and 1495 S&P. Support is at the 2070-72 on the Nasdaq 100 and 1468-70 on the S&P 500.

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.