Another down day to start the week. That makes six consecutive days since the top, and the NDX has now dropped from over 1850 to down near 1711. The S&P 500 in the same period has dropped from 1462 down to 1374, a drop of 6-7% losses just in the last six days.

The day started out with a gap down to lower lows. They immediately snapped back in a strong rally that failed right at resistance -- not only lateral price resistance but at the declining tops lines of the last several days. They backed and filled, tried an afternoon rally that failed again at resistance, and then rolled over, particularly accelerating into the close.

The S&P 500 closed at the low for the day, down more than 13 points. The Dow was down more than 63, the Nasdaq 100 down more than 13 as well, and the Philadelphia Semiconductor Index (SOXX) down 3.44 after being up about 5 earlier in the session.

Technicals were very negative by 4 Ã,½ to 1 on advance-declines on New York and by about 4 to 1 on Nasdaq. NYSE up/down volume was more than 10 to 1 negative. Nasdaq was about 4 to 1 negative. Total volume on New York was just under 2 billion, and Nasdaq traded 2 1/3 billion.

TheTechTrader.com board was mostly negative, with only a few stocks up today. The winner on positive drugs was MYGN, up 1.40 on 4 million shares. Other than that, there were just a few fractional gains. Immersion Corp. (IMMR) did manage to gain 56 cents today on more than 2 million shares.

On the downside, Home Inns & Hotels (HMIN) led the way, down 3.29. Fuel Tech (FTEK) lost 1.56, Energy Conversion Devices (ENER) 1.09, Aluminum Corp. of China (ACH) 1.71, and the US Oil Trust (USO) 1.39. Qiao Xing Universal Telephone (XING) gave back 1.61, and Sigma Designs (SIGM) 1.22.

So, it was another nasty day on the Street.

Stepping back and reviewing the hourly chart patterns, the indices made nominal new lows on the S&P by the end of the day, but the NDX held the earlier low, though not far from it. Not a good way to start the week! The index oscillators are now VERY oversold going into tomorrow. The NYSE McClellan Oscillator closed a -313, the NDX oscillator -98 & the SPX oscillator -100. Very oversold reading’s indeed! So I’m expecting a possible turnaround Tuesday rally try tomorrow after some more possible early weakness.

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.