The markets had a weird session and weird end to the options expiration week -- weird because they opened with a sharp gap up that went right to resistance on the NDX and on the S&P and then they backed off to retest.

The retest was successful, and they made higher lows on the S&P and substantially higher on the NDX.  They then rallied again to retest the rally highs, slightly taking them out on the S&P but failing to confirm on the NDX.  For the rest of the afternoon they drifted lower in an orderly fashion but steadily lower.

Net on the day the indices were mixed with the Dow down 66, while the NDX was up 9 1/2 and the S&P up 1 3/4.  The SOX was up 2 points today, but that was about 5 points off its earlier high.

The technicals were very positive and indicated the underlying strength of today's action. Advance-declines were 21 1/2 to 11 positive on New York and 18 to 11 1/2 positive on New York.

Total volume was just under 1.8 billion on New York with about a 10 to 7 positive ratio.  Nasdaq traded nearly 1 3/4 billion with about a 3 to 2 positive ratio.

TheTechTrader.com board was very mixed.  There were some outstanding issues today.  Cutera (CUTR), a Chart of the Week portfolio position, led the way on my board today, up 1.61.  BioCryst Pharmaceuticals (BCRX) with a late afternoon rally snapped back from recent losses, up 1.18.

Other stocks of note, Energy Conversion Devices (ENER) had a strong session, closing near the highs, up 71 cents. Lexar Media (LEXR), one of last week's Charts of the Week, was up 94 cents, passing $8 on nearly 13 million shares. Neoware (NWRE) was up 71 cents, Rediff.com India (REDF) 45 cents, Real Networks (RNWK) 51 cents, Kendle International (KNDL) 44 cents, Juniper Networks (JNPR) 48 cents, Global Industries (GLBL) 30 cents, and Convera (CNVR) 57 cents.

On the downside, Forward Industries (FORD) backed off 45 cents, but most other losing stocks were just off small fractions.

Stepping back and reviewing the hourly patterns, we have very distinct patterns on the NDX and S&P, the NDX being much stronger.  This week's right-hand extended V bottom pattern on the NDX resulted in an explosive move at mid-week, and it consolidated for the last couple days but retested successfully.

The S&P, on the other hand, doesn't look as enthusiastic.  It groped the 1169-71 zone on three different occasions, including yesterday.

We have a chance of making an important bottom here if the S&P does not violate support around that 1168-70 zone.

The levels we'll be watching for possible breakouts next week are above the 1198-1200 zone on the S&P, which is current resistance, and above the 1574-76 zone on the Nasdaq 100.

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.