For the second week in a row, a rising market was blindsided by negative "macro" news out of Europe and suffered a violent downturn as a result. What has been quite astonishing is the speed with which the last two declines have occurred. When all is said and done, though, support at $SPX 1215-1220 is still in place.

The equity-only put-call ratios are clinging to their buy signals. Market breadth continues to swing wildly from day to day.

Most recently, it is back on a buy signal. Volatility indices ($VIX and $VXO) are trendless, but spikes
in either direction are to be faded.

All of these indicators seem to be doing the same thing -- trading in a range. Moreover, they are following the market rather than leading it. Even when apparent intermediate-term signals occur, there is no follow-through. But as long as $SPX support at 1215-1220 holds, the bulls have the upper hand.

Lawrence G. McMillan is the author of two best selling books on options, including Options as a Strategic Investment, and also publishes several option trading newsletters.