Stocks can go down, and it now looks like they will. The market, as measured by the Standard & Poors 500 Index ($SPX) continued to rise at a dizzying pace until the Fed meeting ended on Wednesday. Now stocks are taking on a more bearish tone.

Typically, the market pulls back to at least the 20-day moving average in these situations, and usually overshoots that target. Currently, that 20-day moving average is at 1725. Equity-only put-call ratios remain on buy signals.

Market breadth has weakened considerably in the last few days. After Thursday's close, breadth indicators are now on sell signals. Volatility indices ($VIX and $VXO) rose slightly, but have not risen enough (yet) to jeopardize their bullish status.

In summary, the market seems to need to refuel. It can probably do that by pulling back to its rising 20-day moving average.

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.