The indices ended slightly to the downside today, and technicals reflected that by being extremely flat.

The day started out with a move lower that held at the 6 day mid-channel support lines, and then a strong rally, particularly on Nasdaq, ensued that took us to new rally highs, but the S&P 500 trailed and did not confirm.  At that point they backed off in a five-wave decline through mid-session, tried to rally again in the afternoon and made lower highs, and then backed and filled in a coil-like fashion on the Nasdaq 100.

Net on the day you could call today a consolidation of the rally we had on Friday.  The Dow was down 34, the S&P 500 about 1.90, and the Nasdaq 100 down less than a point.  The Philadelphia Semiconductor Index (SOXX) was up 0.55 today and up for most of the session, but was higher earlier in the day.

Technicals were flat with advance-declines on New York negative by just 13 issues and positive by about 150 issues on Nasdaq.  Up/down volume was 8 to 7 negative on New York, with a little less than 1.6 billion traded.  A like amount was traded on Nasdaq, with also an 8-to-7 negative plurality.

TheTechTrader.com board was mostly higher today with some outstanding issues.  DXP Enterprises (DXPE) soared 4.09, continuing its rally of late, and is now about 14 points off its low of last week.  NVEC was up 4.48 and broke out of a 15-month base pattern. 

Rambus (RMBS) advanced 2, AKAM up 3 and Apple Computer (AAPL) up 2.37.  In addition, Hansen Natural Corp. (HANS)  gained 1.22, Energy Conversion Devices (ENER) 80 cents, MED 74 cents, and OMNI, one of our portfolio positions, up 88 cents.  Travelzoo (TZOO) was  up 94 cents, and another one of our current favorites, Zevex (ZVXI), gained 90 cents.

On the downside, Mikron Infrared (MIKR) got hit for 1.09, Vertex Pharmaceuticals (VRTX) 73 cents, and Baidu.com (BIDU) 92 cents.

But for the most part it was largely a higher day on TheTechTrader.com board.

Stepping back and reviewing the hourly chart patterns, as indicated earlier todayââ,¬â"¢s session can be construed as a consolidation day, although we had some early sharp gains, particularly on Nasdaq.

The markets being just beneath the 1280 resistance level on the S&P 500 and the 1520 area on the NDX are poised for a continuation of the rally.  We also will be watching short-term support at 1500 NDX and 1274 S&P to see which way they want to take them.

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.