The broad market, as depicted by $SPX, could not penetrate through the 1130 area to the upside, despite trying to do so for several days. $SPX fell through two support levels and broke the uptrend line yesterday, and now today it closed at 1083 -- completing the bearish top.






Equity-only put-call ratios are turning bearish.




Market breadth began to wane before the market collapsed, and gave a sell signal as of Tuesday's close.




Volatility indices ($VIX and $VXO) have been less bearish. $VIX hasn't risen with the same ferocity that $SPX has declined.




In summary, the $SPX breakdown appears to be significant, despite the quick appearance of short-term oversold conditions.

Lawrence G. McMillan is the author of two best selling books on options, including Options as a Strategic Investment, recognized as essential resources for any serious option trader's library.