It was a definitive down-day today with a strong downside thrust which hit the indices hard, particularly in the afternoon. They did gap down big in the morning, but managed to snap back in a three-wave rally. The NDX had a much stronger performance during that rally. The S&P 500 basically marked time back and forth in a bear flag-type pattern. In the afternoon, they began rolling over, and as soon as support was broken they had a slide that lasted the rest of the day. Only the last 5-10 minutes of the day did they manage to come back off the lows.

But net on the day it was a very negative day with the Dow down 226 1/2, the S&P 500 falling 30 Ã,½, the Nasdaq 100 35 3/4, and the Philadelphia Semiconductor Index (SOXX) more than 10.

The technicals confirmed the extremely negative day today, with advance-declines lower by nearly 10 to 1 on New York and by 5 to 1 on Nasdaq. Up/down volume was even worse, with about a 14 to 1 negative ratio on New York on total volume of just under 2 billion. On Nasdaq the up/down volume ratio was 7 to 1 negative, on total volume of just under 2 Ã,½ billion.

TheTechTrader.com board was extremely negative, with the vast majority of stocks down, many down more than a point. The loss leaders were Transcend Services (TRCR), dropping 3 Ã,½ more points, and breaking trendline and moving average support. NVE Corp. (NVEC) dropped 2.13, FuelTek (FTEK) got hammered for 3.61 and closed back under 30. Excel Maritime (EXM) fell 2.71, China Medical Technologies (CMED) 1.40, Chindex (CHDX) 1.21, Global Solutions (GSOL) 1.61, JA Solar (JASO) 1.62, and Taser (TASR) 1.35, following up on yesterday's big negative reversal.

On the plus side, there were two stocks that gained more than a point. GigaBeam (GGBM) snapped back 1.08 from yesterday's pullback, and former Chart of the Week Ceragon Networks (CRNT) gained 1.07 on nearly 2 million shares.

There were only three other gainers on my board, and they were up just a few cents, so it was a very negative session. But the indices now are in an extremely oversold condition and ripe for a rally. However, the head and shoulders top pattern that had developed on the Nasdaq 100 and the Q's was broken today, and we'll be looking to lighten up the longs on any snapback to key resistance levels that appears corrective.

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.