I would call today an unsatisfying up-day.  The day started out with a big move up on a gap-up at the opening.  They worked their way higher to new 2005 highs by mid-day, and then consolidated for a couple hours.  When those bullish-looking consolidations failed to materialize in an extension of the rally , they began to roll over in mid-afternoon and the indices got pounded and gave back the majority of their earlier gains.

The Dow was up less than 22 today, but at one point was up more than 100.  The S&P 500 ended up 1.61, but that was about 9 points off the high.  The Nasdaq 100 was up 6.58, but about 15 points off its earlier high. The SOX was up 5 points today, 8 points off its earlier high.

So you can see the indices gave back a large portion of what they had gained in the morning.

The technicals were positive despite the sell-off, but much more narrow than they were earlier in the day.  Advance-declines were 18 to 15 positive on New York, 16 to 14 on Nasdaq.  Up/down volume on New York was 3 to 2 positive on total volume of 1.57 billion.  Nasdaq traded a little more than 1 3/4 billion, with about a 10 to 7 positive ratio.

TheTechTrader.com board was mixed, but there were a couple point-plus gainers.  REDF, one of our current model portfolio positions, was up 1.63 today on solid volume.

ATEA, one of this week's Charts of the Week, was up 1.19 to a multi year high on strong volume.  BOOM managed to gain 53 cents, but was up as much as 4 points earlier in the day, and gave back the vast majority of its early gains on 6 ½ million.

JMDT was up 43 cents.  That was another one of our Charts of the Week this week.  LEXR, a current model portfolio position, was up 28 cents.  And TZOO gained 60 cents.

On the downside, PWEI gave back 95 cents, despite being up more than a point earlier in the day.  In the alternative energy sector, ESLR was down 64 cents and ENER 57 cents. BVF gave back 39 cents.

Stepping back and reviewing the hourly chart patterns, despite new 2005 highs on the indices, the afternoon sell-off put a big damper what could have been an outstanding day for the indices.

We'll see if the late afternoon's steep sell-off results in any downside follow-through tomorrow.  Key levels to watch are the 1698 area and then the 1690 zone on the NDX.  Below 1690, we do get a breakdown on the NDX.

S&P support is at about the 1262 zone and beneath that important support at 1258.  Any breakdown below 1258 on the S&P and 1690 on the Nasdaq 100 would be very negative for the indices.

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.