This stock market has been able to ward off even a modest correction since the fall of 2012. However, we are now seeing a chart breakdown accompanied by sell signals from some of our most trusted indicators. If the bears can't make some hay with this environment, I would be surprised.

Equity-only put-call ratios have rolled over to sell signals. Market breadth had been extremely overbought through last Thursday, March 6. But steadily eroding breadth this week has caused both breadth indicators to generate sell signals.

Volatility indices ($VIX, $VXO, and $VXST) were reluctant to join in with the bearishness until they broke out Thursday. This appears to be the confirmation of a rising trend in volatility, and that is bearish for stocks. We are bearish now, but will be observant.

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.