The stock market indices started the week on a sour note with a big down gap, and had a hard time rallying all day. The market did firm up mid-afternoon only to rollover in the last hour.

Net on the day, the Dow was down 130.78 at 12,381.26, the S&P 500 down 15.90 at 1317.37, and Nasdaq 100 down an ugly 34.65 at 2316.78.

Advance-declines were 4 to 1 negative on the New York Stock Exchange and more than 4 to 1 negative on Nasdaq. Up/down volume was better than 10 to 1 negative on New York with total volume of 965 million shares. Nasdaq traded more than 1 3/4 billion shares and had about a 14 to 3 negative plurality.

TheTechTrader.com board, however, had some big winners today. Leading the way, Sequans Communications S.A. Ame (SQNS) rose 2.61 to 11.73, or 28%. Krispy Kreme Doughnuts, Inc. (KKD) was up 1.65 to 8.05, Orsus Xelent Technologies Inc. (ORS) up 1.33 to 2.42, or 122% gain, Cheniere Energy, Inc. (LNG) 1.72 to 11.76, Gulf Resources, Inc. (GFRE) 57 cents to 3.90, and Raptor Pharmaceuticals Corp. (RPTP) 91 cents to 4.90.

In addition, some of the ultra-short ETFs we looked at today were Direxion Daily Small Cap Bear 3X Shares (TZA) up 1.96 to 37.74, Direxion Daily Financial Bear 3X Shares (FAZ) 1.76 to 45.05, and ProShares UltraShort DJ-UBS Crude Oil (SCO) 2.30 to 47.28.

On the downside, Amazon.com Inc. (AMZN) lost 2.43 to 196.22, International Business Machines Corp. (IBM) 1.90 to 168.26, Tesla Motors, Inc. (TSLA) 1.15 to 26.82, Rediff.com India Ltd. (REDF) 1.05 to 10.06, Questcor Pharmaceuticals, Inc. (QCOR) 1.06 to 20.92, and Molycorp, Inc. (MCP) 1.55 to 57.81.

Stepping back and reviewing the hourly chart patterns, the indices had a big gap down to start the week, and then had sideways action for a while attempting to consolidate. They did manage to rally in mid-afternoon, but that faded in the last hour and the indices closed substantially off Friday’s finish with big losses across the board on pretty negative technicals.

We’re likely getting oversold here, but we may not be done yet on the downside

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