The indices started the session negatively and ended very negatively. The day started out with a big gap down, as pre-market futures were sharply lower. However, the indices did bounce in the morning, and rather sharply on the Nasdaq 100. The S&P 500 went along for the ride, but wasn’t enthusiastic, and by mid-morning they hit their snapback rally peak and started to roll over, accelerating into the early afternoon. A mid-afternoon bounce ensued after the indices became a tad oversold intraday, but there was no staying power, and they rolled over and sold off in the last hour to the lows for the day.

The Dow was down more than 148, the S&P 500 down nearly 22, and the Nasdaq 100 more than 17. The Philadelphia Semiconductor Index (SOXX) was down about 4.

Technicals were extremely negative today, with advance-declines negative by 25 to 7 on New York and by 22 to 8 on Nasdaq. Up/down volume was 6 1/2 to 1 negative on New York, with more than 1.6 billion traded. Nasdaq traded 2.15 billion and had a more than 3 to 1 negative ratio.

TheTechTrader.com board was extremely mixed, with some point-plus gainers and losers. On the plus side, Fonar Corp. (FONR), on the announcement of the sale of some of their major units, jumped 3.20 on 1 1/2 million shares, leading Nasdaq’s percentage gainers today, up 77%. Research Frontiers (REFR), one of our recent Charts of the Week and portfolio positions, jumped 1.06 to a new multi-year high. Sigma Designs (SIGM) advanced 52 cents, Transcend Services (TRCR) 44 cents, Jones Soda (JSDA) 69 cents, Force Protection (FRPT) 66 cents, and Chart of the Week Excel Maritime (EXM) up 47 cents. Chindex (CHDX), also a portfolio position of ours, advanced 55 cents today.

On the downside, point-plus losers included Local.com (LOCM), which got hammered for another 2.28 today, and down around 5 points off its high from a few days ago. MEDTOX Scientific (MTOX) dropped 2.12, FuelTek (FTEK) 1.14, JA Solar (JASO) 1.58, and LSB Industries (LXU) 1.44.

Stepping back and reviewing the hourly chart patterns, the indices broke key trendline, moving average and price support today, and closed near the lows for the day going away and most likely initiated a new down phase. We will be looking for lower levels over the next few days.

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.