The indices closed out the week with another solid loss, with the Nasdaq 100 closing at the low for the week going away.

The day started out with a gap-down. They struggled in the early morning to even rally, forming bear flags, and when those broke late morning, they ended up with a stair-step decline for the rest of the session. They did try to rally with about an hour to go, but failed at initial resistance and rolled over and closed at or near the lows for the day going away.

The Dow was down 120, the S&P 500 16, the Nasdaq 100 nearly 27 1/2, and the Philadelphia Semiconductor Index (SOXX) more than 8 Ã,¼.

The technicals were negative by 3 to 1 on advance-declines on both indices. But the story was in the up/down volume, which was extremely negative, by 7 to 1 on New York on volume of about 1.85 billion, and by 5 to 1 on Nasdaq on total volume of more than 2.4 billion.

TheTechTrader.com board was mixed, with both point-plus gainers and losers. On the plus side, METH gained 1.25, but even that was 1.50 off the earlier high in the day. IMMR, a stock we traded, was up 1.25, but also closed about 1.50 off the earlier high as well.

So, even the gainers today gave back a chunk of what they gained early.

On the downside, Energy Conversion Devices (ENER) dropped 1.19, Acorda Therapeutics (ACOR) 1.51, Home Inns & Hotels (HMIN) 1.75, and Onyx Pharmaceuticals (ONXX) 1.05.

Most other stocks were fractionally up or down today.

Stepping back and reviewing the hourly chart patterns, the downtrend continued with a vengeance today, starting out with a gap down and then lower lows and lower highs all day. Despite the fact the NDX made lower lows for the week, the S&P failed to take out yesterday’s lows. Unless we get that confirmation, there is still the possibility of a non confirmation positive divergence and a snapback rally. In addition,the indices are now in an extremely oversold condition that could result in a snapback early next week.

But the damage has been done technically this past week, and it’s likely that after some backing and filling and perhaps even some retracement, we’re going to see lower levels over the next several days to weeks.

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.