The markets were down from the get-go as futures were lower before the opening and as a result the market gapped down.  They tried to stabilize in the morning, but during the lunch hour the indices began to sell off & slipped steadily during the afternoon. Over the last 45 minutes or so they managed to snap back & prevented them from closing near session lows.

Net on the day, the indices were down across the board, with the Dow down 26 3/4, the S&P 500 a little more than 4, and the NDX a little less than 18.  The SOX was down around 7 1/2 today.

The technicals were about 2 to 1 negative on New York on advance-declines and a little better than that on Nasdaq.  Up/down volume, likewise, was about 2 to 1 negative on New York but about 3 to 1 negative on Nasdaq.  Total volume on New York was about 1 1/3 billion, and Nasdaq was about 1 2/3 billion.

TheTechTrader.com board was mixed with more decliners than advancers  On the plus side, Pacific Ethanol (PEIX) was up 1.36 today on 2 1/2 million shares and broke out to a new multi-year high.

Zevex (ZVXI) also broke out to a multi-year high, up 1.43, and BioCryst Pharmaceuticals (BCRX) snapped back 93 cents.

Other stocks of note, Chindex (CHDX) was up 60 cents, Opsware (OPSW) up 72 cents, OpenWave (OPNW) 63 cents, and TradeStation (TRAD), one of our current portfolio holdings, up 49 cents.

On the downside, Energy Conversion Devices (ENER) got hammered for 2 more points today and was the loss leader on our board.  Rediff.com India (REDF) gave back 1.47 and is now down more than 10 points in the last four sessions and shown very little ability to bounce. 

Dynamic Materials Corp. (BOOM) continuing its recent decline of more than 10 points in the last week or so, was down another 1.49 today.  Air T (AIRT) gave back 1.59 of Friday's bog gain, and Bentley Pharmaceuticals (BNT) dropped another 1.02.

Other losses of note, following Rediff lower, Sify Ltd. (SIFY) lost 72 cents, Parlux Fragrances (PARL) 88 cents, Internet Initiative Japan (IIJI) 74 cents, and AVI Biopharma (AVII) another 68 cents.  Apple Computer (AAPL) also lost 2.60.

Stepping back and reviewing the hourly chart patterns, the indices tested last week's lows on the NDX and made higher lows on the S&P, but are still in a downtrend.  Until it's reversed we must assume we may see lower levels before this 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.