The indices were basically in "return to sender" mode, having been up 368 on Friday, and giving it all back and then some, down 372 today.

It was a very disheartening day for the technicians, as a couple layers of support were broken, particularly on the Nasdaq 100. The S&P 500 also broke initial support, but closed right at important price and moving average support on the hourly charts.

Right now the indices have done about a 2/3 retracement on the NDX and a nearly 50% retracement on the S&P, so they need to stop the bleeding here, or we may see a full retest of the lows, or worse.

The day started out with a move down off the opening, and then they stair-stepped lower in a 5-wave decline right into the close.

Net on the day the Dow was down, as mentioned, 372, the S&P 500 lost 48, and the Nasdaq 100,gave back 79. The Philadelphia Semiconductor Index (SOXX) lost 15.39.

Advance-declines were about 4 1/2 to 1 negative on New York and about 3 1/2 to 1 negative on Nasdaq. Up/down volume was 5 to1 negative on New York on lighter total volume of about 1 1/4 billion. Nasdaq traded about 1.9 billion and had a ratio of nearly 6 to 1 negative on advancing over declining volume.

TheTechTrader.com board was quite negative other than some of the short instruments and long oil instruments. The USO oil ETF was up 4.97 to 87.60. The SDS was up 3.44 and the QID 3.19, as would be expected on a sharply lower day like this.

Leading the way lower were DryShips (DRYS) down 3.77 and Excel Maritime (EXM) down 2.38 in a very weak shipping sector. Airlines were also weak with the sharp rise in oil. United (UAUA) at 11.80 was down 1.44 and Continental (CAL) at 16.81 was down 1.59.

Portfolio position Canadian Solar (CSIQ) was down 1.09, and newly added position Cree Inc. (CREE) down 1.29. Focus Media (FMCN) was down 1.19, and the QQQQ were down 2.02.

Fractional gainers included AIG, which jumped 87 cents, or nearly 23%, on almost 400 million shares, to close at 4.72. Converted Organics (COIN) had a solid session, up 44 cents to 7.30, and AgFeed Industries (FEED) at 10.61 was up 58 cents.

Sequenom (SQNM), ahead of its analyst investor day tomorrow, was up 35 cents to 20.61, and recent Chart of the Week Questcor (QCOR) at 6.70 was up 22 cents.

Stepping back and reviewing the hourly chart patterns, the indices stair-stepped lower all day and closed at the lows for the day going away, giving back all of Friday's gains, a very disappointing day for the bulls, We'll see if there's any downside follow through tomorrow and if they can stem the tide near current levels.

With the NDX closing at the low for the day going away and the S&P 500 nearly there, they could get some additional spillover tomorrow. But with volatility the way it is now, you just never know what's going to happen with overnight futures, particularly with news from Washington.

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.