The markets had some profit-taking set in late in the afternoon, after the Fed Beige Book notes were out.  The majority of the losses occurred after that. 

In the morning the market traded a narrow range similar to yesterday’s action when we had five swings back and forth before the lunch hour hit.  However, just before lunch the Nasdaq 100 hit its high for the day, as did the S&P 500.  They came down and bounced right after the Fed Beige Book was announced, but a lack of follow-through to the upside caused selling.  The Nasdaq 100 went to new 4-day lows, and the S&P 500 tested them.  At that point they bounced and backed and filled into the close. 

Net on the day the Dow, despite moving over 12,600 for the first time ever, closed at 12,577, down 5.44.  The S&P 500 closed at around 1430, down 1.28.  The Nasdaq 100 was down 14 Ã,¾ to a little under 1828.  The Philadelphia Semiconductor Index (SOXX) had a negative session, down 3.88.  That was about 2 points off the low.

Despite the negative results on the indices, advance-declines on New York were positive by 180 issues, and up/down volume was positive by a 4 to 3 ratio.  Total volume there was less than 1.5 billion, however.  Nasdaq was a different story.  Advance-declines were negative by 435 issues, and up/down volume was nearly 3 to 1 negative, on total volume of more than 2.35 billion.

TheTechTrader.com board was very mixed today, with only two stocks up or down as much as a point.  Portfolio position and Chinese hotelier Home Inns & Hotels (HMIN) was up 1.57, reaching new all-time highs at 41.85 earlier today before closing at 40.84.

On the downside, XM Satellite Radio (XMSR) got hammered for 1.69 on very heavy volume of 27 Ã,½ million after the FCC announced that a merger with Sirius would be illegal. 

Among fractional gainers, biotech stock Iomai Corp (IOMI) jumped 1 3/4 before giving back a dollar, still closing up 78 cents on the day on 3 million shares.  Global Sources (GSOL) hit a new multi-year high at 20 3/4, up 44 cents.  The other stock of note today was the US Oil Fund (USO), the oil ETF, which we re-entered to our model portfolio.  It closed at 44.22, up 82 cents on 11 1/3 million shares, the heaviest volume in its history.

Among fractional losers, Fuel Tech (FTEK) fell 41 cents, Aluminum Corp. of China (ACH) 42 cents, the SMH 28 cents, and the Qs (QQQQ) 37 cents.  ISIS Pharmaceuticals (ISIS) got hammered on a convertible offering, down 83 cents, and Qiao Xing Universal Telephone (XING) was down 33 cents.  China GrenTech (GRRF) fell 46 cents in the Chinese telecom sector.

Stepping back and reviewing the hourly chart patterns, the indices broke key short-term support on the NDX but held them on the S&P and held them right at the November highs, which is technical support.  So we’ll see if we get any downside, or whether this is just a pause in an ongoing uptrend.  They bent today but they did not break significantly.

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.