The markets experienced a very narrow, quiet session to start the week.  The day started out with a rally attempt that took the S&P to new highs, but the Nasdaq did not confirm.  They then sold steadily into the lunch hour, tried to rally right after lunch but didn't get anywhere, and backed and filled into the close.

Net on the day the Dow was up just 11, the S&P 500 down about a point, the NDX down about 1 1/2 points, and the SOX up 2 1/2. 

The technicals were negative by 5 to 3 on New York and about 3 to 2 on Nasdaq.  Up/down volume was about 4 to 3 negative on New York on total volume of about 1 1/3 billion.  Nasdaq traded a like amount with a barely positive plurality on up/down volume.

TheTechTrader.com board was very narrowly mixed.  There was only one stock up or down as much as a point.  That was DayStar Technologies (DSTI), up 1.09 in the alternative.  Evergreen Solar (ESLR) was up 21 cents as well, but Energy Conversion Devices (ENER) gave back another 94 cents.

Elsewhere, Cutera (CUTR) was up 89 cents, Convera (CNVR) up 43 cents, Lexar Media (LEXR) 40 cents on news of a stake by Carl Icahn, and Intellisync Corp. (SYNC) went to a new nearly two-year high today, closing at up 5.80, up 58 cents on 3 2/3 million shares.

On the downside, Dynamic Materials (BOOM) lost another 59 cents, Rediff.com India (REDF) 52 cents, and ViroPharma (VPHM) 72 cents.  But other than that there were only very small fractional changes.

Stepping back and reviewing the hourly chart patterns, the action of the last two days looks consolidative & corrective in nature, and the current pattern on the Nasdaq 100 appears to be a flag pattern.  There's a similar pattern on the S&P, despite today's new high, and we'll be watching short-term support at around the Nasdaq 1647-48 zone, and beneath that 1635-38. S&P support is at the 1231-32 zone, and beneath that at around 1226-27.

Resistance at 1237 S&P and 1660 NDX should be watched on the upside.

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.