The indices had a down-day, but it wasn't too bad.  Even though the day started out with a pretty sharp move down on the S&P, the NDX held up a lot better and held the rising trendlines of the last few days.  Then they had a strong rally that took the market to nominal new 2005 highs on the NDX, but failed by far to confirm on the SPX.

Then the indices sold off steadily in the afternoon.  A rally try with an hour to go failed, and the indices sold off pretty much into the close. Only a last few minutes bounceback brought them off the lows.

Net on the day the Dow was down 46 1/2, the S&P 4 1/4, the NDX was down less than 1 point, and the SOX was also down less than 1 point.

The technicals were decidedly negative today by 20 to 12 on advance-declines on New York and 18 to 12 on Nasdaq. Up/down volume was about 9 to 5 negative on New York, with about 1.4 billion traded.  Nasdaq traded about 1.6 billion with about an 8 to 7 negative plurality. 

TheTechTrader.com board was very mixed.  On the plus side, Abatix (ABIX) was up 2.19 and Energy Conversion Devices (ENER) up 1.23.

On the downside Dynamic Materials (BOOM) was up sharply in the pre-market on earnings, but conference call guidance brought the stock down very hard, as the stock gave up 9 points off its pre-market high and was down 4.41 on nearly 8 million shares on the day.

Other losses of note, BioCryst Pharmaceuticals (BCRX) was down 1.71, Rediff.com India (REDF) 64 cents, Internet Initiative Japan (IIJI) 56 cents, and Evergreen Solar (ESLR) 53 cents.

Stepping back and reviewing the hourly chart patterns, after a 100-point rally on the Nasdaq 100 since the end of October, we have basically backed and filled in a rising flag-type pattern.  That's bullish ,but it needs to continue.  Momentum is still strong, and the back of the has not yet been broken. 

Even the SPX, which trailed, has been in a sideways configuration, or flag-type pattern, over the last four sessions, with overhead resistance around 1224-25 and support around the 1215-16 zone.

Those levels should be closely monitored for a breakout either way, and on the Nasdaq 100 obviously the new 2005 high today around 1637 is the number to keep an eye on for resistance, with the 1610-15 zone as support.

The rising trendline on the Nasdaq 100 of the last four days was tested late in the session and held, but a breakdown from that level could lead to further deterioration in the market.

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.