The indices ended lower, as we had expected they may, based on pre-market futures and our analysis of negative divergences, overbought indicators and cycle highs due in this time frame that indicated we were due for a retracement.

They started out with a move down hard in the morning, especially in the blue chip indices,then bounced around late morning and headed lower in the afternoon. They hit new session lows on the Nasdaq 100 but held them on the S&P 500, which helped them to firm in the last couple hours. But in the last 45 minutes to an hour or so they basically meandered sideways and went no where.

Net on the day, the Dow was down 88.66, the S&P 500 6.41, and the Nasdaq 100 6.05. The Philadelphia Semiconductor Index (SOXX) was down about 3.

Technicals confirmed the negative day, with a little better than 3 to 2 negative advance/decline ratio on New York and about a 4 to 3 negative ratio on Nasdaq. Up/down volume was 3 to 2 negative on New York on light volume of around 1.1 billion. Nasdaq, however, traded over 2 billion, with a little less than 3 to 1 negative ratio.

TheTechTrader.com board was mixed, but there were several strong gainers. Shippers, in particular, had a strong morning, but gave back much of it. DryShips (DRYS) ended near 91, up 1.13, but was as high as 93 earlier in the day. Excel Maritime (EXM), a portfolio position, closed up 75 cents at 43.87, but traded as high as 46 earlier in the session, and TBS International (TBSI), also in that group, advanced 2.01 to 46.06, and had the best close in that group.

Other stocks of note, AgFeed Industries (FEED) had a terrific session, soaring to new all-time highs over 21 and change, before closing at 20.94, up 1.94, on over 3 million shares.

China Natural Resources (CHNR) also had a strong session, jumping to as high as 25.27, closing at 24.61, up 1.83 on the heaviest volume in a few weeks. Energy Conversion Devices (ENER) advanced 49 cents. Northern Oil & Gas (NOG), a portfolio position, gained 45 cents to 10.10.

There were lots of other fractional gainers, including Vision Sciences (VSCI), a recent Chart of the Week, up 32 cents, and Nextwave Wireless (WAVE), which closed at 6.90, up 30 cents, although that was as high as 7.59 earlier in the day, on 1.9 million traded.

On the downside, Home Inns & Hotels (HMIN) fell 1.46, and that was the only point-plus loser on our board other than VMware (VMW) , which gave back 1.18.

Stepping back and reviewing the hourly chart patterns, the indices consolidated in an orderly fashion today but in a downward bias and closed lower on the session. But the overall pattern remains constructive, and the action of the last few days can be construed as consolidative and corrective in nature.

We'll see how it goes tomorrow, but any break of key short-term support in the 1965 area on the NDX and below the 1402-03 area on the S&P 500 could still lead to further downside.

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.