On Tuesday, May 1st, $SPX traded at 1415. Now, just 7 trading days later, the entire psyche of the market has become dark and brooding.

$SPX broke down through support at 1390 last Friday. But the crucial level is support at 1340, which has held so far.

Equity-only put-call ratios remain on sell signals. This has been the most bearish indicator all throughout this decline.

Breadth oscillators rolled over to sell signals on May 3rd -- a week ago. Since then they have moved into oversold territory.

For the most part, the volatility indices ($VIX and $VXO) have been bouncing around in the ranges that they had established earlier this year. For $VIX, that is the 17-21 range.

In summary, the sell-off of the past seven trading days has taken a toll on the technical indicators. The 1340 level on $SPX remains important, and a close below there would warrant a bearish stance. But if that level somehow manages to hold, the bulls could once again strongly take charge.

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.