The indices ended mixed today, but they started out weak, held support and then had a strong three-wave intraday rally, interrupted by a mid-day pullback that testing intraday support successfully.  In the last couple hours they pulled back again and came back off the highs for the day.

Net on the day, the Dow was off just 3 Ã,¾, and the S&P 500 was up just 0.6.  But the Nasdaq 100 was where the story was today, up more than 10 points, with the Philadelphia Semiconductor Index (SOXX) up more than 5.

Reviewing the technicals, advance-declines were less than 200 issues higher on the NYSE, and less than 300 on Nasdaq.  Up/down volume was 7 to 6 negative on New York, but 13 to 4 positive on Nasdaq.  Volume on New York was 1.4 billion, and on Nasdaq was a little less than 1 Ã,¾ billion.

TheTechTrader.com board was mostly higher, led once again by NVE Corp. (NVEC), up 4.44 on nearly 1.9 million.  Sigma Designs (SIGM) exploded for 1.20 to a new 18-year high on more than 1 million shares.  DXP Enterprises (DXPE) was up 1.17, U.S. Global Investors (GROW) up 1.01, HRT up 1.05, and NFRI 1.20.

On the downside, there were no point-plus losers, but Fuel Tech (FTEK) gave back 81 cents, Angeion (ANGN) 58 cents, and Pacific Ethanol (PEIX) 39 cents.  Most other stocks that were off were down only very small fractions.

After the close, Merck (MRK) announced it would acquire Sirna Therapeutics (RNAI), one of our recent Charts of the Week and model portfolio holding, at $13 a share.  The stock jumped nearly 100% in the aftermarket, and we exited for a nearly 90% gain in two weeks.

Stepping back and reviewing the hourly chart patterns, the indices tried to follow-up on Fridayââ,¬â"¢s losses, but only did so for a half hour before a solid snapback rally set in.  When the first pullback off of that rally held intraday  support successfully, they rallied to the declining tops lines on the Nasdaq 100 and the S&P 500.  But they failed to get through, and failed as well to get through their moving averages on the hourly charts and lateral price resistance on the S&P 500 at around 1381.

So the next day or two could be critical to the direction of the indices, but despite the fact that they bent hard, they still havenââ,¬â"¢t cracked any significant support levels.

It remains to be seen whether or not thatââ,¬â"¢ll be the case after the next several days.  Weââ,¬â"¢ll soon see how it goes.

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.