The $SPX chart has turned bearish, with the breaking of the 1340 support level. However, it is oversold in that it is more than 4 standard deviations below its 20-day moving average, which is
currently at about 1370.

Equity-only put-call ratios remain on sell signals, but they are so high on their charts that they are in an oversold state, too.

The breadth indicators have now reached extremely oversold levels, but they are also on sell signals.

Volatility indices ($VIX and $VXO) have started to move higher this week, and $VIX finally has broken out of its trading range on the upside. The move above 21 is bearish for stocks, so the $VIX chart is bearish at this time.

In summary, nearly all indicators are on sell signals. Oversold conditions are calling for a short-term, but perhaps strong, rally. But true buy signals will take a while to form.

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.