The indices had a tough start to the week, as all indices were lower, but they were led lower by the tech sector.  The SOX Index, in particular, was down more than 2 percent today, down 11.64, and as a result the Nasdaq 100 was down 19 1/2.

The day started out with a slight rally attempt that failed quickly.  A very sharp sell-off ensued, particularly on Nasdaq, led by the SOX and the SMH in the tech sector.

The indices had at five-wave decline and reached their session lows just as the lunch hour was ending.  The afternoon was spent correctively pushing higher, but in the last 10 minutes they rolled over and backed off from the rally highs. 

Net on the day, the Dow was down 46 and change, the S&P 500 down nearly 4 1/2, and as indicated the Nasdaq 100 down 19 1/2, with the SOX down 11.64.

The technicals were not that bad, only 240 issues lower on New York, with the up/down volume about 4 to 3 negative.  Total volume there was a little more than 1.5 billion.  Nasdaq volume was 1 3/4 billion, with a 2 1/2 to 1 negative ratio on up/down volume and a 3 to 2 negative ration on advance-declines.

TheTechTrader.com board was very mixed.  Only one stock gained as much as a point, and that was Dynamic Materials Corp. (BOOM), which had an outstanding day, with a late surge, closing up 1.87 on solid volume.

Other stocks of note on the plus side, Pacific Ethanol (PEIX) snapped back 88 cents, Parlux Fragrances (PARL) 51 cents, and PW Eagle (PWEI), a portfolio position, up 66 cents.  Smith Micro (SMSI) advanced 20 cents   and Evergreen Solar (ESLR) in the alternative energy sector was up 69 cents, but that was way off the earlier session high near 16.

Cryptologic (CRYP) was up 72 cents, BioCryst Pharmaceuticals (BCRX) 60 cents and Bentley Pharmaceuticals (BNT) snapped back 43 cents.

On the downside, Broadcom (BRCM) was down 1.92, Energy Conversion Devices (ENER) lost 1.40 today, Apple Computer (AAPL) down 1.21, and Nvidia (NVDA) 1.01.

Stepping back and reviewing the hourly chart patterns, by breaking down this morning the Nasdaq 100 completed a two-day head and shoulders top formation that broke key short-term support at 1674-75.  But the S&P 500 held three times today at 1282 short-term support, so we'll see if the blue chip indices can hold and rally the indices back, or whether the tech weakness puts additional pressure on the market and they head lower.

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.