The indices had a very strong snapback session from a strongly oversold condition. But the day did start out with a move to the downside early on. They reversed that quickly, rallied very strongly, and then went into a 3-4 hour funk where the market narrowed and coiled, but that turned out to be a bullish consolidation. After lunch the indices took off, broke out, and moved sharply higher with the blue chips taking the lead in the afternoon, whereas in the morning the Nasdaq 100 and SMH and SOXX indices led the way.

But the indices did close near the highs for the day going away, with the Dow was up 157.8, the S&P 500 up just under 17, and the Nasdaq 100 up more than 24. The Philadelphia Semiconductor Index (SOXX) advanced 14.70 and fueled the NDX advance today.

The technicals moved solidly into positive territory by 23 to 10 on New York and a little bit better than 2 to 1 on Nasdaq.

Up/down volume was the story, however, with 1 1/3 billion traded to the upside and less than 200 million to the downside, an advantage of 6 Ã,½ to 1 on New York on total volume of a little more than 1 Ã,½ billion. Nasdaq traded 1.87 billion, with a 5 to 1 positive plurality.

Despite all the gains today, TheTechTrader.com board looked pretty mixed and narrow. Some of the Chinese stocks stood out today, with Global Solutions (GSOL) the leader at 21.02, up 1.55. The SMH advanced 1 point, and the Q’s up 59 cents.

Other stocks of note, Sigma Designs (SIGM) snapped back 83 cents, closing at 26.64 on 1 million shares. Transcend Services (TRCR) at 20.33 was up 62 cents. Portfolio position Exide Technologies (XIDE) snapped back smartly to 7.61, up 53 cents. GigaMedia (GIGM) jumped 29 cents, and portfolio position DG FastChannel (DGIT) jumped 33 cents. Alvarion (ALVR) on takeover rumors was up 46 cents.

On the downside there were no point-plus losers on my board, but Force Protection (FRPT) continued under pressure today, down another 90 cents. MEDTOX Scientific (MTOX) fell 86 cents, FuelTek (FTEK) 49 cents, and portfolio position Color Kinetics (CLRK) down 58 cents today.

Stepping back and reviewing the hourly chart patterns, the indices did accomplish one thing today: They broke the back of the 3-day downtrend and rallied late in the afternoon. But is it more than technical?

That remains to be seen. We’ll find out early next week whether this is simply a technical snapback and heading lower or a short-term bottom. We know that the severely oscillators probably triggered today’s rally, but can it sustain? That will be the question for next week.

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.