The markets had two very distinct parts of the session, a large opening up gap and a strong morning rally after an orderly pullback, and then a complete reversal giving all of it back and then some in the afternoon.

The indices closed down, near the lows for the day, as the Dow fell sharply by more than 97 points ,the S&P 500 was down 5 Ã,½, and the Nasdaq 100 up just 0.8,but some 32 points off the earlier high, nearly a complete give-back there.  The Philadelphia Semiconductor Index (SOXX) gave back 12 points and closed up less than 3.

Technicals reversed from very positive to negative by 3 to 2 on advance-declines on both exchanges.  Up/down volume was nearly 2 to 1 negative on New York with a total of more than 1 2/3 billion traded.  Nasdaq traded more than 2 billion today, and ended up with a 4 to 3 positive ratio, although that was again a big reversal from much wider positive numbers earlier in the day.

TheTechTrader.com board was very mixed, mostly lower but there were some gainers out there, particularly in the semiconductor group. Broadcom (BRCM), for example, was up 1.56 today on 23 Ã,½ million shares.  One of our previous Charts of the Week, Medifast (MED), was up 81 cents.  It was a particularly strong day for Fuel Tech (FTEK), one of our portfolio positions, up another 74 cents today.

Most other gainers were up only small fractions.

On the downside, Baidu.com (BIDU) led the losers, down 3.24.  Apple Computer (AAPL) was down 1.19, DXP Enterprises (DXPE) 1.53, NVE Corp. (NVEC) 1.32, and PW Eagle (PWEI) 1.56.

Stepping back and reviewing the hourly chart patterns, the indices rolled over and now have begun to create a series of lower highs and lower lows, and have rollover head-and-shoulders type top patterns on both the NDX and S&P 500. They are going to be undergoing severe tests of key short-term support around the 1476-77 zone on the NDX, perhaps as earlier as tomorrow.

Key S&P 500 support is in the 1260-62 zone, and that may also be tested tomorrow.  Weââ,¬â"¢ll keep an eye very closely on those levels, as they represent the neckline of head-and-shoulder potential top formations.

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.