Today the Fed raised interest rates again. As a result, we got the usual mid-day action, but they ended up to the downside today despite a post-Fed announcement rally attempt.

The day started with a move lower, testing important short-term support successfully at 1700 NDX and around 1280 S&P.  For the next several hours they meandered higher on the NDX and sideways on the S&P, and just before the Fed announcement they rallied into that.  After the announcement, the markets dropped sharply, the S&P and Dow to new session lows, the NDX held, which was a sign to me that they may try a rally and the certainly did.  We had a sharp snapback, which took out the session highs on the Nasdaq but failed to do so on the S&P and Dow, and they rolled over in the last 45 minutes or so, and finished  negative.

The Dow was down 35, the S&P 500 more than 5, the Nasdaq 100 was down just 2.7, but the SOX was the culprit down just under 8 points, or 1 1/2 percent. 

Technicals were marginally positive on advance-declines by about 18 to 15 on New York and 16 to 14 on Nasdaq. Up/down volume was nearly exactly equal on Nasdaq up and down, with more than 2.15 billion traded.  New York was about 11 to 8 1/2 negative, with a total of about 1.9 billion traded.

So, there was heavy volume and a lot of churning, ending up to the downside today.  But key short-term support was tested successfully, and until either resistance is taken out or support is broken, the indices remain in a consolidation mode from the big rally we had last week.

TheTechTrader.com board was very active today.  The star of the day by far, which we traded several times, was Sepracor (SEPR), up 8 1/2 points on more than 20 million shares.

Another big winter was Pacific Ethanol (PEIX), closing at 18.83, up 4.19 on more than 4 million shares ahead of tonight's speech by the President, which should include positive comments on alternative energy.

But the other alternative energy stocks were mixed. Energy Conversion Devices (ENER) was down 1.39, DayStar Technologies (DSTI) off 36 cents, while Evergreen Solar (ESLR) was up 28 cents.

Other stocks of note, low-priced AVI Biopharma (AVII) was up 87 cents on 6 1/2 million shares, a big percentage gain there.  Vertex Pharmaceuticals (VRTX) advanced 90 cents.   PW Eagle (PWEI), one of our current portfolio positions, was up 55 cents, Nuance Communications (NUAN) up a quarter, and Dynamic Materials Corp. (BOOM) up 57 cents.

Also on the downside, Neoware Systems (NWRE), another portfolio position, had a difficult day, down 1.81, and the SMH fell 1.04.

Stepping back and reviewing the hourly chart patterns, despite the fact today was a down day key support held while resistance did as well, and currently the Nasdaq finds itself in a 20-25 lateral trading range, while the S&P is in an 11-point band.

We'll see which way they break after the smoke clears.

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.