The market is getting more volatile and bearish as the combined pressures weigh upon it. These include the Congressional wranglings, the negative seasonality of early October, and the technical deterioration of our indicators.

The Standard & Poors 500 Index ($SPX) has support at 1660-1670 and at 1630 below that. There is resistance at 1730. Equity-only put-call ratios have had trouble getting on the same page of late, but they have finally done so. Both are on sell signals now. Breadth indicators have only recently turned negative. Both of the ones we watch are on sell signals now.

Volatility indices ($VIX and $VXO) have generally been moving higher and now their rise is accelerating. This is bearish for the time being, as an upward trend in volatility is bearish for stocks.

In summary, the market seems to be reluctantly slipping into a deeper correction. The bulls have fought this hard, but perhaps they should just let it go, for if oversold conditions truly arise, then that will be the time to buy stocks.

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.