The markets backed and filled for most of the session after a sharp pullback early in the morning took back about 50% of yesterday's rally. They then rallied, retested, rallied again and then narrowed near the apex of large wedges intraday and closed there, in what appears to be bullish consolidation patterns developing.

Net on the day the Dow was down just 19.59, the S&P 500 off 5.30, and the Nasdaq 100 down nearly 31 points. The Philadelphia Semiconductor Index (SOXX) was down 3.66, a little more than 1 percent.

The technicals were very narrowly mixed, with only 29 more stocks down than up on New York, but about 9 to 5 negative on advance-declines on Nasdaq. Up/down volume was also very narrow on New York, just edging to the plus side, on total volume of about 1 1/3 billion. Nasdaq traded a little more than 2.1 billion and had a negative ratio of about 2 to 1 on volume.

TheTechTrader.com board was mixed. On the plus side, Energy Conversion Devices (ENER) advanced 3.52, Citigroup (C) up 2.49, and JPMorgan (JPM) 2.93.

There was some strength in select solar issues other than ENER, including Solarfun (SOLF), up 1.04 to 11.57, and JA Solar (JASO) up 1.30 to 11.84.

Airlines were firm with United (UAUA) up 73 cents, and Continental (CAL) up 92 cents, as oil moved lower for most of the session before rallying late in the day.

Other stocks of note, Emcore (EMKR) jumped 43 cents to 5.37, portfolio position Greatbatch (GB) at 25.12 was up 58 cents, Sovereign Bancorp (SOV) at 4.82 was up 87 cents on 41 million shares, and one of this week's Charts of the Week Emergent BioSolutions (EBS) at 13.83 was up 74 cents.

Portfolio position Converted Organics (COIN) jumped 80 cents to 5.63, and the DUG was up 90 cents on the drop in oil.

On the downside, Apple (AAPL) gave back 4.54, and the US Oil Fund ETF (USO) dropped 2.29. Those were the only multiple point-plus losers on our board.

Stepping back and reviewing the hourly chart patterns, the indices after dropping sharply and retracing then backed and filled for the rest of the day in what I consider a potentially bullish consolidation. Overhead resistance now is 1598-1600 NDX and the 1170-75 zone on the S&P 500.

Support is at the 1548-52 zone on the Nasdaq 100 and the 1140-45 zone on the SPX.

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.