The indices had another negative start to the week, but did come back a bit late in the session, although the day started out with a pop to the upside, that was the high for the day. They failed right at Friday's highs on the S&P 500, fell short on the NDX, and then rolled over in a 5-wave decline that lasted most of the session, culminating with a retest of last week's lows on the NDX and SPX on two different occasions late in the day. That held, they came back a bit late on what appeared to be some short covering, but still closed substantially lower on the day.

Net on the day the Dow was down 180, the S&P 500 down 19 1/2, and the Nasdaq 100 just under 25. The Philadelphia Semiconductor Index (SOXX) was down 6 1/2.

The technicals were decidedly negative, with decliners outnumbering advancers by 2 1/2 to 1 on New York and a little more than 2 to 1 on Nasdaq. Up/down volume was worse, about 5 1/2 to 1 negative on New York on light total volume of under 1 billion. Nasdaq also traded lighter volume, of about 1.6 billion, and had a ratio of 5 1/2 to 1 on declining over advancing volume.

TheTechTrader.com board was mixed. Focus Media (FCMN) on a strong earnings report gained 2.30, on nearly 10 million, closing at 28.55. Almost Family (AFAM), a recent Chart of the Week, continued snapping back from Last Tuesday’s sharp setback today, up another 2.14 to 42.35, and Solarfun (SOLF) on a solid earnings report was up 1.03 today to 16.20.

Other point-plus gainers included the SDS up 1.83 and the QID up 1 as would be expected in a down market. The DUG also snapped back 86 cents today, as oil was soft.

Additionally, Sigma Designs (SIGM), up another 43 cents to 19.98, and portfolio position Shengdatech (SDTH), also up 43 cents, to 9.95. United Airlines (UAUA) crossed 15 for the first time in 2 1/2 months, closing at 14.94, up 76 cents.

On the downside, point-plus losers included Energy Conversion Devices (ENER), down 2.40 to 67.67, and Excel Maritime (EXM), down 1.54 to 37.55, as well as Brigham Exploration (BEXP), down 1.05 in a generally weak junior oil sector. A-Power Energy (APWR) gave back 74 cents , JA Solar (JASO) down 50 cents and VisionChina Media (VISN) lost 99 cents.

Stepping back and reviewing the hourly chart patterns, a key test took place today of trendline and lateral price support on the indices, and they did hold late in the session, but are placed tentatively above key support levels and potential breakdown levels. We'll see if they manage to hold them or whether they finally break them and send the indices to test lower levels.

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.