The day started out with some morning strength.  We backed and filled and then rallied and made slightly higher highs before lunch on the Nasdaq 100.  But the S&P and Dow failed to do so, and then in the afternoon they sold off in a three-step decline but held the morning lows and then firmed up in the last hour.

Net on the day, it was a very narrow day for the blue chips but solid day for Nasdaq.  The Dow was up 2 points today and the S&P up 2 cents, but the Nasdaq 100 was up 9 ½ based on the SOX Index being up nearly 12 points today.  The semiconductor index was certainly a leading factor today in Nasdaq's strength.

The technicals were just 18 to 15 positive on New York and just 16 to 14 positive on Nasdaq on advance-declines.  Up/down volume was barely positive by just a tad on New York, with about 1 ¾ billion traded.  Nasdaq traded 1.9 billion with a little less than 3 to 1 positive ratio on up/down volume.

TheTechTrader.com board was mixed, but there were some very strong outstanding issues today, a couple of them new ones. Rambus (RMBS) was up 3.74 on some positive news today, and Nuvelo (NUVO) up 3.66 on more than 10 million shares, also on positive news.

Some of our picks for 2006 and our portfolio positions were strong today.  Energy Conversion Devices (ENER) soared another 2.88 on more than 2 million shares today, closing at 44.66.  PW Eagle (PWEI) was up a point on more than 1 ½ million traded.

Other stocks of note, Broadcom (BRCM) advanced 1.56 and closed over 50 on strong volume.  Sierra Wireless (SWIR) was up 1.90 on more than 4 million shares, breaking out today.   Vertex Pharmaceuticals (VRTX) was up 1.17.  Model portfolio position Neoware Systems (NWRE) was up 40 cents, Atherogenics Inc. (AGIX) up 80 cents, and Hauppauge Digital (HAUP) up 71 cents.

On the downside, there were fractional losses across the board, nothing to speak of by more than a quarter, other than Dynamic Materials Corp. (BOOM), which lost 37 cents today.  But even that one came back off the lows late in the session.

Stepping back and reviewing the hourly chart patterns, as indicated, today was more of a consolidation day, as yesterday's late rally and this morning's strength morphed into a sideways move for most of the session.  But it appears to be corrective and consolidative in nature, and unless key short-term support is broken the indices are acting resiliently enough to test higher levels before this rally is over.

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.