The markets ended mixed but mostly lower, with the Nasdaq leading the way to the downside and sharply so, particularly in the afternoon.

The day started out with a gap up.  They moved up to retest yesterday's highs on the S&P 500, but fell short on the Nasdaq 100.  Then they immediately started selling off, tested support, hesitated for about 45 minutes, and then broke down just before lunch hour through the key 1725 Nasdaq 100 support zone level. 

At that point, the S&P 500 was still holding support and trendlines, and they started to snap back, but Nasdaq failed right at that 1725 level.  The markets got very quiet for a period of time, but when they started to sell off they accelerated to the downside very sharply.  The Nasdaq 100 sold off from 1725 to 1701 in the space of about an hour and a half.  The S&P 500 also sold off but held yesterday's lows, and then they snapped back in the last hour to come back off the lows and put the Dow back in the plus column, but just slightly so.

Net on the day the Dow was up 4 1/2, the S&P 500 down just 0.18, but the Nasdaq 100 was down nearly 20, with the SOX Semiconductor Index down nearly 11, taking a more than 2 percent loss and putting pressure on Nasdaq all day.

Technicals were slightly positive on New York and negative on Nasdaq.  Advance-declines were positive by 200 issues on New York and negative by about 200 issues on Nasdaq.  But the up/down volume was slightly positive on New York and very negative on Nasdaq.  NYSE volume was nearly 1 3/4 billion, while Nasdaq was very heavy at 2 1/3 billion, but had an almost 2 1/2 to 1 negative ratio there.

TheTechTrader.com board was mostly narrowly mixed except for a few outstanding issues.  On the plus side, Travelzoo (TZOO)  was up another whopping 7.66 on 4.8 million shares today.  The thin float and heavy short position contributed to that gain for sure.

One of our old favorites sprang to life today on a terrific earnings report. Sierra Wireless (SWIR) gapped up and ran 4 points on heavy volume of more than 12 1/4 million shares.

Other outstanding issues were Forward Industries (FORD), one of our old favorites as well, which sprang up 1.55 on nearly 1 1/2 million shares. Pacific Ethanol (PEIX) gained 1.26 on 2.8 million.

Other stocks of note, AVI Biopharma (AVII) was up 68 cents on more than 3 million shares, Dynamic Materials Corp. (BOOM) advanced 63 cents, and SunOpta (STKL) up 44 cents.

On the downside, loss leaders were Citrix Systems (CTXS), down 1.36, and Broadcom (BRCM), which gave back 2.12 today, really pressuring the SOX.  The SMH as a result was down 83 cents.

Stepping back and reviewing the hourly chart patterns, Nasdaq is definitely leading the S&P 500 and Dow to the downside, that's for sure, as the blue chips held up much better here and are still above key support.  Nasdaq broke down below its price and moving average support on the hourly charts, and tested secondary support late in the session near 1700 before snapping back.

Options expiration occurred today, and we often get volatility on those days with a move back in the opposite direction on Monday.  That's what I'll be looking for -- a snapback to test resistance.  The areas we'll be watching are the 1720-25 zone on the NDX and the 1315-17 on the S&P.

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.