The indices were down and dirty today and most of the damage was done in the first few minutes, when the indices opened sharply lower after sharply lower pre-market futures. 

They then bounced in morning right to resistance and failed, and then stair-stepped down for the next several hours, reaching their lows for the day just after the lunch hour was over.  After lunch hour the market staged a brief rally that lasted no more than a half hour, and then they backed and filled into the close, firming up in the last 15 minutes to bring the indices back to resistance. 

Resistance was tested several times today and failed, but  Key short-term support at NDX 1730 was tested and held, as well as today's 1280 range on the S&P 500.Tomorrow it's likely the downtrend will resume because after the close Yahoo & IBM fell short on earnings reports  & the futures are once again sharply lower

Net on the day, the Dow was down 63 1/2, the S&P 500 4.68, the NDX 10.39, and the SOX was down 8.20, more than 1 1/2 percent, certainly putting pressure on Nasdaq today.

TheTechTrader.com board was active today and mixed, but several stocks were dramatically higher.  Current portfolio position BioCryst Pharmaceuticals (BCRX) exploded on 19 million shares, up 3.37 to a new 5-year high.  One of our Charts of the Week this week, (Phazar) ANTP, advanced nearly 4 points this morning on heavy volume but backed off and closed up a little less than 2 points. 

Astea International (ATEA), another portfolio position, was up 1.24, nearing its multi-year highs as well.  Another of our Charts of the Week, NovAtel (NGPS) was up 70 cents today.  And Forward Industries (FORD) advanced 89 cents.

In the alternative energy sector DayStar Technologies (DSTI) jumped to a five-month high, up 1.58. Evergreen Solar (ESLR) gained 59 cents, and Energy Conversion Devices (ENER) 47 cents as oil prices advanced to over $66 today.

Other stocks of note, Dynamic Materials Corp. (BOOM) advanced 84 cents, and low priced AVI Biopharma (AVII) gained 65 cents.

On the downside, Rediff.com India (REDF) got hammered late in the afternoon and dropped more than 2 points on heavy volume, closing at 17.12.  In that same group, Sify Ltd. (SIFY) was off 1.30 to 9.55 on heavy volume, so the Indian Internet portals got hammered today.

PW Eagle (PWEI) was down 67 cents, NeoMagic (NMGC) 94 cents, Internet Initiative Japan (IIJI) 85 cents and AGIX down 75 cents.

Stepping back and reviewing the hourly chart patterns, as indicated earlier, the indices came down and broke minor levels of support but held at key multi-session support around 1730 NDX and slightly below it at 1278-79 zone S&P. They did bounce late in the session and if they're going to break the downtrend, they'll have to thrust up through current resistance and that's not likely, at least early in the session, as futures are once again down sharply.

We'll be watching tomorrow the 1739-40 zone and the 1284 area on the S&P.  Beyond that additional resistance lies at the 1747-50 zone NDX, and the 1288-90 zone S&P.

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.