It was an interesting session today.  The indices were lower for most of the day, but came back strongly in the last hour to cut the losses and perhaps put in a tradable bottom.  But we need some confirmation with a follow-through and we'll see how it goes over the next couple days.

The day started out with a gap down.  They bounced briefly and went to lower lows.  The S&P and NDX retested the lows of Friday and Monday and then after a mid-day rally failed at resistance, they went down and retested those lows again, but held and rallied sharply in the last hour to take back a good chunk of the losses.

The Dow, which was down more than 100 at one point, closed down 50.  The S&P 500 was down 3.87, the NDX down 5 3/4, closing just less than a point off the highs for the day, and the SOX was down 1.62.

The technicals were about 3 to 2 negative on New York and a like amount on Nasdaq on advance-declines.  Up/down volume was narrower, however, by only 8 to 5 and 7 to 5, respectively.  Total volume was heavier, more than 1.4 billion on New York and a like amount on Nasdaq.

TheTechTrader.com board was very active, highlighted by gains in the alternative energy sector.  Leading the way was one of our favorites of the year, Energy Conversion Devices (ENER), which closed at 34.41, up 1.92 on 2.2 million.

Dynamic Materials (BOOM) had a strong day, up 1.55.  Nvidia (NVDA) was up 1.04.  Global Industries (GLBL), following up on yesterday's advance, was up 98 cents on nearly 4 3/4 million.  Evergreen Solar (ESLR) in the alternative energy sector advanced 50 cents and Distributed Energy Systems (DESC) 52 cents.

Cutera (CUTR) in the medical device area was up 96 cents.

On the downside, the junior bios gave back some.  Momenta Pharmaceuticals (MNTA) was the loss leader, down 2.18.  Amylin Pharmaceuticals (AMLN) was down 96 cents and ViroPharma (VPHM) 47 cents.

Stepping back and reviewing the hourly chart patterns, as indicated earlier they had some severe tests of support near 1555 NDX and around the 1200-01 area on the S&P and held.

We'll be watching tomorrow for a follow-through on price action and a take-out of the key 1575 resistance now on the Nasdaq 100 and the 1214 area on the S&P 500.

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.