The markets had a choppy session and ended down nominally.  The day started out with a gap down.  They didn't stay down for long on Nasdaq, but the S&P did make lower lows.  Within a half hour or so, the indices started a rally that took the NDX to new session highs and tested the 1700 resistance zone from last week. 

But when the S&P failed to even equal its high of yesterday, the indices then sold off steadily into the lunch hour.  In the middle of the lunch hour they bounced back and then rolled over and retested the lows for the session at that point on the Nasdaq 100.  But the S&P was at a much higher level, and that positive divergence caused a snapback rally, taking the S&P up near the session highs, but the NDX at that point was trailing.  So they backed off again, and only in the last 10 minutes did they firm up just a tad.

Net on the day, the Dow was down 28, the S&P down 2, the NDX less than a point, and the SOX up 0.4.  So it was a very narrowly mixed session at the close.

The technicals, however, were negative, with advance-declines negative by 18 to 14 on New York and 17 to 13 on Nasdaq.  Up/down volume was about 9 to 8 negative on New York, with 1 3/4 billion traded.  Nasdaq traded a little over 2 billion, with just a slight plurality of down-volume over up-volume.

TheTechTrader.com board mixed, mostly higher however.  There were some outstanding gainers today. Versant (VSNT) came out with excellent earnings before the opening, gapped up and ran hard on more than 2 1/3 million share.  It was up 2.69 today and led Nasdaq with a more than 50% gain for the session.

Other stocks of note, recent Chart of the Week, Ionatron (IOTN) was up 95 cents. PW Eagle (PWEI), one of our portfolio positions, rallied late in the session, gaining 1.05 on more than 2.3 million.  Dynamic Materials Corp. (BOOM) was up 35 cents, BioCryst Pharmaceuticals (BCRX) 44 cents, and in the larger-cap sector Broadcom (BRCM) advanced 63 cents and Apple Computer (AAPL) 51 cents.

On the losing side, Energy Conversion Devices (ENER) gave back 55 cents, Nuance Communications (NUAN) 46 cents, Stereotaxis (STXS) 33 cents, and Novavax (NVAX) 31 cents.

Stepping back and reviewing the hourly chart patterns, the indices tested support a couple times today and held, then rallied back at the end of the day, but overall consolidated for most of the day in a choppy fashion.

We'll be watching overhead resistance at 1700 NDX and 1292 SPX for clues as to whether they can make further progress.  On the downside, support is currently at around 1684-5 NDX and the 1283-4 zone on the S&P 500.

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.