The stock market indices opened strong and reached new 2010 highs, but that was short-lived. A distinct 5-wave decline in an orderly channel resulted during the rest of the session, as the indices plunged just before the close, reaching down from 2200 on the NDX to 2167, and from 1227 on the S&P 500 down to the 1208 area. Only a last 10-minute pop back brought them from off the lows to pare back the losses.

Net on the day, the indices were lower across the board. The Dow was down 60.09 at 11,346.75, the S&P 500 down 9.85 at 1213.40, and Nasdaq 100 down 12.06 at 2176.88.

Advance-declines were nearly 3 to 1 negative on the New York Stock Exchange, and 2 1/2 to 1 negative on Nasdaq. Up/down volume was more than 4 to 1 negative on New York on total volume of about 1.1 billion. Nasdaq traded more than 2.1 billion shares with about a 2 to 1 negative ratio.

TheTechTrader.com board was mixed, mostly lower today. Leading the way to the upside was the Direxion Daily Small Cap Bear 3X Shares (TZA) up 21 cents to 20.20, $1 off its low, and the Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) jumped 82 cents to 21.64, 1.20 off its low.

Minor gainers of note were Motricity, Inc. (MOTR) up 88 cents to 30.74, MIPS Technologies Inc. (MIPS) up 54 cents to 15.01, LDK Solar Co., Ltd. (LDK) 41 cents to 13.90, IDT Corporation (IDT) 51 cents to 18.01, Endo Pharmaceuticals Holdings Inc. (ENDP) 58 cents to 36.35, and Aastrom Biosciences, Inc. (ASTM) up 43 cents to 3.83.

Leading the way on the downside, Apple Inc. (AAPL) dropped 2.54 to 316.08, Amazon.com Inc. (AMZN) 1.72 to 170.27, and Golden Minerals Company (AUMN) 1.78 to 24.80, a big reversal on that gold stock. Cree Inc. (CREE) lost 1.02 to 54.46, Coinstar Inc. (CSTR) 1.54 to 60.05, and Ebix Inc. (EBIX) 1.11 to 25.17.

In addition, Goldman Sachs (GS) slipped 2.65 to 166.55, JinkoSolar Holding Co., Ltd. (JKS) 1.03 to 35.25, Polypore International Inc. (PPO) 1.25 to 34.14, Spreadtrum Communications Inc. (SPRD) 1.12 to 15.61, and VirnetX Holding Corp (VHC) 2.80 to 14.58.

Stepping back and reviewing the hourly chart patterns, early strength was quickly reversed as the indices stair-stepped lower in a 5-wave decline, only interrupted by a late snapback on short covering perhaps. But short-term support and moving averages were pierced before the late snapback.

We’ll have to see if there’s any downside follow-through, or if this is just another correction in the course of this uptrend.

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