The markets managed to mark time for most of the morning until the afternoon when they had a solid rally try that classically failed right at lateral price and declining tops resistance. They then turned down with a couple hours to go and headed strongly south, closing at the lows for the day going away, sharply lower.

The Dow closed down more than 167, the S&P 500 down nearly 20, and the Nasdaq 100 36 Ã,½. The Philadelphia Semiconductor Index (SOXX) was down 12.26, or almost 3 percent.

The technicals were very negative, with advance-declines negative by 28 to 5 on New York and by 21 Ã,½ to 9 on Nasdaq. Up/down volume was nearly 7 to 1 negative on New York, and 5 Ã,½ to 1 negative on Nasdaq. Total volume on New York was just under 2 Ã,½ billion, and Nasdaq traded more than 2 Ã,¼ billion.

TheTechTrader.com board, as you can imagine, was mostly lower, and some of them sharply lower. The one positive standout today was VMWare (VMW), which went public yesterday and exploded for another 6.71 today. Dynamic Materials (BOOM) managed to gain 90 cents, but there were very few other gainers. FuelTek (FTEK) snapped back 51 cents, GigaMedia (GIGM) 53 cents, and Accredited Home Lenders (LEND) was up 60 .

But it was ugly for the most part. On the downside, the loss leaders were Excel Maritime (EXM), which reversed 5 Ã,½ points off its high and closed down 3.77 today. DryShips, (DRYS) also lost 2.66 in a weak shipping sector. Ceragon Networks (CRNT) dropped 1.52. Cree Inc.(CREE) dropped 1.13, China Medical Technologies (CMED) 1.10, Force Protection (FRPT) 1.20, Immersion Corp. (IMMR) 1.53, and JA Solar (JASO) 2.77. Sigma Designs (SIGM) gave back 1.15.

Those were the point-plus gainers and losers.

Stepping back and reviewing the hourly chart patterns, the indices attempted to hang in there and base out in the morning, but when they failed they failed miserably and took out the lows and spiked down into the lows for the day.

Surely with the technicals closing the way they did, the indicators will be extremely oversold, but momentum is strong to the downside, and with very negative fundamental news it appears the market still has room for more downside.

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.