The session after options expiration was a down-day, which is often the case, but the trading was influenced by the approach of Hurricane Rita in the Gulf Coast, shutting down oil refineries and sending the price of oil up around $4.40 a barrel.  In addition, the semi-conductor SOX index was down about 1 1/2 percent today, which exacerbated things.

The day started out with a move down, and they moved lower all morning into the lunch hour, at which point they meandered sideways in what looked like bear flags for a couple hours.  In the afternoon they made lower lows, but they did manage a last-hour rally back to resistance, which took them off the lows for the day.

Net on the day the Dow was down more than 84 points, but that was about 36 off the low.  The S&P 500 was down a little less than 7 and about 4 points off the low. The Nasdaq 100 was down 13 1/3 and about 7 points off the low.  The SOX was down 6.53.

The technicals were a little more than 2 to 1 negative on advance-declines on New York and a like amount on Nasdaq.  Up/down volume was a little more than 2 to 1 negative on New York with about 1 1/2 billion traded.  Nasdaq traded a little less than 1.6 billion, and up/down volume was more than 2 to 1 negative as well.

TheTechTrader.com board was mixed. There were a few  outstanding stocks today.  On the plus side the alternative energy group was stellar.  Energy Conversion Devices (ENER) advanced 2.86 to close at 39.26 on about 2 million shares today on an important announcement of a joint venture in China.

Evergreen Solar (ESLR) exploded to a new 4-year high, taking out key resistance before backing off late in the session, but still closed up 1.05 on nearly 9 1/4 million shares.

Old favorite Forward Industries (FORD) popped 1.84 on more than 1 million shares. 

Other stocks of note, Abatix (ABIX) was up 1.77, BSM snapped back 66 cents, DayStar Technologies (DSTI) 63 cents, Global Industries (GLBL) 59 cents, and Panacos Pharmaceuticals (PANC), one of our Charts of the Week this week, was up 53 cents.

On the downside, Kendle International (KNDL) got hit at the opening and lost more than 2 points today on a half million shares.  Dynamic Materials (BOOM) gave back 79 cents, Catuity (CTTY) 73 cents, and Cavalier Homes (CAV) lost 40 cents today.

Stepping back and reviewing the hourly patterns, they broke down below key support on the Nasdaq 100 but failed to do so on the S&P and Dow. Let's see if that sets up a positive divergence for tomorrow, and whether they can rally from these levels.

Right now the trend still remains down until resistance is taken out.  Key overhead resistance at 1600 NDX and 1238 on the S&P need to be watched closely for a potential takeout and trend reversal.

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.