The markets were weak today, but the Nasdaq 100 surprised many by rallying back sharply and with a vengeance after gapping down big at the opening, along with the S&P 500. The NDX dropped sharply down to 1370 and the rallied to 1407 inside of an hour early in the morning. The SPX did bounce back but got no where near its highs, then backed and filled during the mid-day session and tried to break out in the afternoon. The NDX actually made a new high getting up to 1410, but the SPX made a lower high, and then they rolled over in the last couple hours, particularly in the last 5 minutes.

Net on the day the Dow closed down 155.88 at 8418.77, and the S&P 500 down 19.97 at 909.26. But the Nasdaq 100, despite the late sell-off, still managed to close up on the day by just 1.63 at 1395.79, 15 points off the mid-day high. The Philadelphia Semiconductor Index (SOXX) was down a small fraction, 0.79, at 248.86.

The technicals were negative by 22 to 8 1/2 on New York and 16 to 11 on Nasdaq. Up/down volume was nearly 6 to 1 negative on New York on total volume of just under 1 1/2 billion. Nasdaq traded 2 1/2 billion and had a flat volume ratio.

TheTechTrader.com board was mostly lower with some outstanding stocks on both sides.

The UltraShort Financial ProShares (SKF) gained 3.92 to 42.86, the UltraShort Real Estate ProShares (SRS) up 1.49 to 21.27, the TZA up 98 cents to 26.03, and the Direxion Financial Bear 3x Shares (FAZ) up 64 cents at 5.13.

Vanda Pharmaceuticals (VNDA), which we added to our model portfolio on Friday, was up 1.75 to 10.20. Dendreon (DNDN) gained 1.79 to 21.03. Portfolio position AgFeed Industries (FEED) added 40 cents to 4.38. Palm Inc. (PALM) advanced 39 cents to 11.37 on nearly 5 million. Geron (GERN) gained 22 cents to 6.45. Amazon (AMZN) was up 66 cents, and Apple (AAPL) up 38 cents, despite the market’s losses, and a big reason why Nasdaq was up today. In addition, American Italian Pasta (AIPC) was up 1.62 to 31.97.

On the downside, financials led the way to the downside and were weak most of the session. Goldman Sachs (GS) lost 3.81 to 135.78 JP Morgan (JPM) 3.11 to 35.83, MS down 2.13 to 26.07, Hartford Financial Services (HIG) 2.15 to 16.01, and Bank of America (BAC) down 1.23 to 12.94, closing at the low for the day going away. Wells Fargo (WFC) also lost 1.65 to 26.53.

Other losses of note, Energy Conversion Devices (ENER) dropped 1.05 to 15.96, and DryShips (DRYS) got hammered 1.21 to 6.79 on 70 million shares. Aluminum Corp. of China (ACH) fell 1.54 to 22.90, and SunPower (SPWR) down 1.31 to 27.69.

The Direxion Financial Bull 3x Shares (FAS) lost 2.03 to 10.52, and the iShares FTSE/Xinhua China 25 Index (FXI) down 1.55 to 34.36.

Stepping back and reviewing the hourly chart patterns, the indices were down at the opening, rallied sharply mid-morning, consolidated mid-day, and then rolled over in the last hour to close with large losses on the S&P 500 and Dow, but managed to end barely up on the NDX. So it looks like the sell-off we’re anticipating may have begun today.

Of course, some cooperation from the NDX would help matters. But the financials sure looked like they wanted to lead the market lower and started the week off with steep losses.

Harry Boxer is a technical consultant to many Wall Street hedge funds and large institutional traders, and author of TheTechTrader.com.