The indices ended narrowly to the plus side, but there were definitely two distinct parts of the session today.  The indices had a very strong morning rally that saw the NDX jump about 18 points and the S&P jump 11 points in about an hour.  They hit their peak around 11 o'clock, and the rest of the day was spent meandering lower in an orderly down-channel. Only a last half hour snapback brought them back from the lows for the afternoon.

Net on the day the Dow was up 10, the S&P up 2.7, the NDX up a little more than 8, and the SOX was down 0.43.  The NDX backed off from its declining 40-day moving average resistance level this morning, which helped drag the rest of the indices down.

The technicals were about 18 to 15 positive on New York and 16 to 14 on Nasdaq.  Up/down volume, however, was 2 to 1 positive on New York with a little more than 1 1/4 billion traded.  Nasdaq was about 8 to 5 positive, with about 1.45 billion traded.

TheTechTrader.com board today was active.  There were some outstanding issues today, led by Internet Initiative Japan (IIJI), which was up 2.20 on 18 3/4 million shares, only 3 cents off the high.

Old favorite Parlux Fragrances (PARL) soared to a new all-time high over 29, closing at 28.95, up 2.21 today on nearly 1 million shares.

DayStar Technologies (DSTI), one of our former Charts of the Week, exploded to a new all-time high as well, getting up to as high as 13.60, before closing at 12.34, up 1.84 on 6 1/2 million.

Amylin Pharmaceuticals (AMLN) gapped up today and ran hard, closing up 1.69 on 11 1/2 million shares, a breakout day for that stock.

Other stocks of note, CryptoLogic (CRYP) was up 59 cents. Escalon Medical (ESMC), one of our Charts of the Week, was up 48 cents.  Vasco Data Security (VDSI) was up 43 cents and Taser (TASR) up 38 cents.

On the downside, the loss leader was Dynamic Materials (BOOM), down 1.70.  Forward Industries (FORD) gave back 83 cents and Air T (AIRT) 43 cents.

Stepping back and reviewing the overall patterns, what today's rally did was retest resistance and back off from there.  Right now the Nasdaq 100 remains in a 1 1/2-week downtrend, and the S&P resembles a head-and-shoulders top formation. 

But until the lows are taken out through the 1190-91 area on the S&P, the pattern is not complete.

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.