The market started out the week with a down session, although they had a rally in the morning that took the S&P to new highs, with the Nasdaq not confirming this time.  That resulted in a sell-off for the rest of the session that saw the indices press severely on the 40-day moving averages on the hourly charts and on price support, as well, but we have not technically broken down yet, although I have a feeling we may see that occur as early as tomorrow .  Key support at the 1590-92 zone on the NDX, as well as the 1224-26 zone on the S&P, should be tested.

Net on the day the Dow was down 55, the S&P down 4.65, the Nasdaq 100 a little bit more than 7, and the SOX about 3 points.

Technicals were about 5 to 3 negative on New York and about 3 to 2 negative on Nasdaq.  Up/down volume was 2 to 1 negative on New York on total volume of little less than 1.3 billion.   Nasdaq had a little less than 1.5 billion traded on about a 9 to 5 negative ratio.

TheTechTrader.com board was mixed, with some sharp gainers and losers.  On the plus side, Forward Industries (FORD) exploded to a new all-time high today on an excellent earnings report and gained more than 4 points on 7 million shares, closing at 24.

Low-priced SYNERGX Systems (SYNX) was up 1.88 on 19 million shares, but that was 1.25 off the highs.  CryptoLogic (CRYP) was up 46 cents and Magal Security (MAGS) 36 cents. 

On the downside, Amylin Pharmaceuticals (AMLN) gave back 1.44.  DayStar Technologies (DSTI), after a strong morning, had a very negative afternoon, giving back 3 1/2 points off its high.  It closed down 1.46 on 4.5 million shares.

Georesources (GEOI) was off 77 cents, Able Energy (ABLE) off 82 cents, Dendreon (DNDN) off 45 cents, with Vertex Pharmaceuticals (VRTX) down 73 cents.

Among the large caps, Broadcom (BRCM) was down 73 cents, Juniper Networks (JNPR) 81 cents, and Intel (INTC) dropped to a new 12-day low, closing under its 3-month rising trendline and 40-day moving average.  That's certainly negative for the market.

Stepping back and reviewing the hourly patterns, today's decline brought the NDX right to the 40-day moving averages, where it closed, as well as price support at previous lows from Thursday and Friday near the 1592 zone.

So, they'll be severely testing support tomorrow from the get-go.  S&P support still remains in the 1223-26 zone and it should be testing that tomorrow as well.

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.