The day started out with a bang to the upside as futures were strong due to strong news from Spain and financing for the Spanish banks. The market quickly faded and sold off steadily in the morning, down to mid-day. From there, they formed bear flags and indicated at that point, that we were going lower, which they certainly did in a sharp 5-wave decline, and the indices closed not far off the session lows. Net of the day, the Dow dropped 240 points from being up 100 points, down 142.96 at 12,411.23, the S&P 500 reversed from 1335.52 to 1307.73, and closed a point above, down 16.73 at 1308.93, and the Nasdaq 100 went from 2579 to 2513, and closed down 42.03 at 2517.18. It was a very, very negative reversal, and a very negative way to start the week. Advance-declines were nearly 4 to 1 negative on New York, and nearly 4 to 1 negative on Nasdaq as well. Up/down volume was 11 to 1 negative on New York, with total volume 730 million shares traded. Nasdaq traded 1.5 billion, and had a 6 1/2 to 1 negative volume ratio. TheTechTrader.com board was mostly lower, led by the large-cap 100 stocks as Google Inc. (GOOG) dropped under 570, and closed at 568.50, down 11.95. Apple Inc. (AAPL) reversed 17 points, and closed at 571.17, down 9.15 after being up nearly 8 points. Amazon.com Inc. (AMZN) lost 1.98 to 216.50. International Business Machines Corp. (IBM) was down 2.63 to 192.51. Goldman Sachs (GS) was down 1.74 to 92.80. Netflix, Inc. (NFLX) lost 2.64 to 63.00 even. Vertex Pharmaceuticals Incorporated (VRTX) gave back 2.08 to 54.90. SolarWinds, Inc. (SWI) dropped 1.39 to 43.11. VirnetX Holding Corp (VHC) got hammered for 1.11 to 33.46. Rosetta Genomics, Ltd. (ROSG) lost 1.12 to 10.18. In addition, the Direxion Daily Financial Bull 3X Shares (FAS) gave back 4.04 to 76.00 even, and the Direxion Daily Small Cap Bull 3X Shares (TNA) fell 3.15 to 45.46. On the other hand, the ultra-shorts did well today. The ProShares Ultra VIX Short-Term Futures ETF (UVXY), which we traded today, was up 2.44 to 17.85. The Direxion Daily Small Cap Bear 3X Shares (TZA) was up 1.40 to 22.30. The Direxion Daily Financial Bear 3X Shares (FAZ) took back 1.33 to 27.28. Low-priced stocks on the long side today included ZaZa Energy Corporation (ZAZA), up 71 cents to .396, or 22%, on 2.5 million shares. Streamline Health Solutions, Inc. (STRM) gained 44 cents to 3.42, or 14%. Solazyme, Inc. (SZYM) advanced 97 cents to 12.08, or 9%, on over 1 million shares. Pacira Pharmaceuticals Inc. (PCRX) jumped 98 cents to 12.96. Community Health Systems, Inc. (CYH) was up 1.13 to 23.32. Francesca’s Holdings Corporation (FRAN) ran up 1.15 to 28.72. Questcor Pharmaceutical (QCOR) snapped back 1.28 to 45.27. Mellanox Technologies, Ltd. (MLNX) jumped 1.46 to 63.10, and was up substantially higher during the day. Those were the stocks on the long side today. There weren’t many percent gainers that were more than 3-4%. Stepping back and reviewing the hourly chart patterns, the indices gapped up, came down hard, consolidating mid-day. From there, they rolled over in a sharp decline in the afternoon that closed the indices not far off the session lows and right near the moving averages in the hourly charts, which is a key area. As I indicated last week, there is a possibility that a head-and-shoulder bottom could be forming, but we need to move back into the 1300-05 zone to form the right shoulder. We’ll see if that occurs, or that they break, and we’re headed lower in the throes of a declining major channel that could take us as low as the 1240-50 zone, if we do break support. Let’s see how it goes tomorrow and the rest of the week. Good Trading! Harry