The markets had what I consider a very important technical session today. After an early bounce failed, the indices went sharply lower to retest last week's low, and made just nominal new lows on the Nasdaq 100 but higher lows on the S&P 500. When that occurred they rallied sharply late morning, the NDX running from 1192 to 1279, and the S&P 500 from 866 to 919. They then backed and filled for the next three hours in a very bullish consolidation pattern that on three occasions held intraday price and moving average support. In the afternoon when it was apparent they weren't going lower, they turned around and rallied sharply, with the NDX jumping from 1240 to 1311. It closed there at the high for the day going away, while the S&P 500 jumped from 890 to 947, closing right at that high.

Net on the day the Dow was up 401, and at one point late in the session was over 9000, but closed at 8979. The S&P 500 was just a point off the high, up 38.59 to 946.43. The Nasdaq 100, at just under 1313, closed up 68.74, which was 120 points off the low. So tremendous reversal rallies off key support lows today. The Philadelphia Semiconductor Index (SOXX) jumped 10.30 or 4 percent.

Advance-declines rallied sharply into the plus column by 22 to 9 1/2 on New York and a little better than 2 to 1 on Nasdaq. Up/down volume was very positive by just under 4 to 1 on New York on total volume of just under 2 billion. Nasdaq traded about 3 1/3 billion and had an excellent ration of 6 1/2 to 1 positive on advancing over declining volume.

The indices now have the appearance of a double bottom, but they closed at moving average resistance on the hourly charts, so we'll have to see what kind of follow-through we get tomorrow.

TheTechTrader.com board was very active, sharply lower in the morning, but reversed sharply higher, with most stocks coming back strongly from their early morning lows. Energy Conversion Devices (ENER), which dropped down to 36.24, closed at nearly 43, up 5.19 on 3.2 million. United (UAUA), a pick of ours this morning, had an excellent day with the sharp drop in oil under $70 a barrel, closed at 10.30, up 2.95 on 27 million shares, after reaching as low as 7.32 and as high as 10 3/4.

Continental Airlines (CAL) also had a similar move, jumping from 12.40 to 15.93, closing at 15.75, up 2.91 on 18.7 million.

Alpha Natural Resources (ANR) got down as low as 30.85 and closed at 36.22, the high for the day going away, up 5.21, a big reversal there. Apple (AAPL) similarly jumped from 91.74 to 103.43, closing at 101.89, up 3.94 on 69 million, a nice reversal there.

The QLD reversed, with a 28.27 low and 34.27 high, closing at 34.27 at the high for the day going away, up 3.50 on 86 million.

So, some very strong reversals on heavy volume today. That's what I was looking for and that's what we got.

On the downside, the SDS fell 8.41, QID 8.21, and the DUG 10.10, as they are obviously short instruments.

Stepping back and reviewing the hourly chart patterns, the indices formed what looked like inverse head and shoulder patterns, and then after a mid-afternoon consolidation exploded higher. We'll see how it goes over the next couple days, but today was a technically bullish session, indeed.

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.