The markets had a mixed session at the close, but we got some volatility during the session. They were up to new highs in the morning, down sharply in the afternoon. The day started out with a mixed opening, but then they rallied quickly, formed bull flags, and then they went higher, and by mid-day they reached the session highs, with the NDX over 2050 and the S&P tagging 1440. However, they began a sell-off, triggered by a sharp down-bar just after lunch hour, and then they accelerated to the downside in a three-wave decline, reaching the lows with about 20 minutes to go. They then finished the session by snapping back into the close on what looked like short covering.

Net on the day the Dow closed at 13,028, up 41, although that was 108 points off the high. The S&P 500 was up just 1.28, 14 points off its high. The Nasdaq 100 was 2016, down 14.67, and 34 points off its. So, a much deeper decline in the NDX today. The Philadelphia Semiconductor Index (SOXX) was down 3.32, about 11 points off its high.

So, dramatic reversals in the afternoon, pulled the indices sharply lower in a couple of cases into the negative column.

The technicals reflected that, as advance-declines were lower by 150 issues on New York and 470 issues on Nasdaq. Up/down volume was flat on the NYSE on lighter volume of just 1.14 billion traded, and even worse on Nasdaq, with a 7 to 4 negative ratio on 2 1/4 billion.

TheTechTrader.com board was very active in the morning, with shippers, solars and Chinese stocks flying in the morning, and getting hammered in the afternoon. DryShips (DRYS), ahead of its earnings announcement, ran up to 116.43, and dropped all the way down to 103.66, a drop of 13 points, closing at 105, down 4.74. It was trading at 107 in the aftermarket on positive earnings.

Excel Maritime (EXM) ran up to nearly 61, but closed at 53.71, down 4.01 on 6 million shares, a rather dramatic negative reversal there. TBS International (TBSI) hit nearly 62, closing at 55.37, down 3.54.

Chinese stocks also reversed sharply with China Finance Online (JRJC) up sharply in the morning to 27 1/4, closing at 24.73, down 1.42. China Natural Resources (CHNR) also reversed from 27.40 to 23.54, closing at 24.52, up 42 cents but way off its high.

Other losses of note today were Converted Organics (COIN) , at 8.05, down 1.02, a big percentage loss there. Most other losing stocks on our board had just fractional losses.

On the plus side, oil stocks continued to do well, with GeoResources (GEOI) just exploding today. It got up to nearly 27, closing around 25, up 2.90. PBO ran all the way up to 19.85 before closing at 18.30, up 2.56, extending last week's sharp gains.

Solarfun (SOLF) at 25.18 was up 2.34, but well off the high of 27.74. Canadian Solar (CSIQ) rolled over hard from 48.91 to 42.60, closing at 43.08 down 1.82, a big reversal there.

So there was some real volatility today, with a lot of stocks closing way off their highs, many reversing to the negative side.

Stepping back and reviewing the hourly chart patterns, tagging new 2008 highs today the indices failed to hold them and sold off sharply in the afternoon. Is this the beginning of the sell-off we were anticipating based on various technical indicators we follow? Quite possibly, but we need to get some downside follow-through to get that confirmation.

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.