The indices started the day with a nice follow-through to yesterday's rally, but that was about it.  After the early morning pop, the indices pulled back, retraced between a third and 50% of the gains, and bounced, but were unable to generate any additional follow-through.  For the rest of the day they meandered back and forth in a fairly narrow range.

Net on the day the Dow was up just 5 points, the S&P was up 4.50, the Nasdaq 100 up about 3, and the SOX up about 2 3/4.  

The technicals were positive by about 3 to 2 on advance-declines on New York, but Nasdaq was ever narrower, about 4 to 3.  Up/down volume, however, was a little less than 2 to 1 on New York with about 1.6 billion traded, less than yesterday.  Likewise on Nasdaq, volume was lower, with about 1.44 billion traded, and the ratio was only 7 to 6 positive.

TheTechTrader.com board was mostly higher, led by three issues that gained more than a point.  The leader today, snapping back from dramatic losses in the last three days, was Energy Conversion Devices (ENER), up 2.08 on more than 2 million traded.  Dynamic Materials (BOOM) advanced 1.55 and Kendle International (KNDL) snapped back 1.54 from recent losses.

Other stocks of note, Cutera (CUTR) was up 86 cents, Sierra Wireless (SWIR) up 79 cents, Neoware (NWRE) 51 cents, and Rediff.com India (REDF) and Global Industries (GLBL) both up 33 cents.

On the losing side, just fractional losses to report.  Viisage (VISG) gave back 36 cents from yesterday's tremendous run.

Stepping back and reviewing the hourly chart patterns, the indices have formed what looks to be a potential bottom with a follow up consolidation day on Friday.  Monday is going to be pivotal to determine whether or not this is an emerging bottom pattern.  If we can get through key overhead resistance at around the 1564-65 level on the NDX and 1200 on the S&P, then the markets can extend this rally and snap them back further, putting in at least a short term bottom. But the jury's still out on that decision!

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.