$SPX broke below the bottom of the previous trading range). That is, $SPX closed well below the previous support in the 1978-1985 area. If it can close below 1978 again today, that would confirm the downside breakout and would generate a confirmed sell signal for the intermediate-term.

Equity-only put-call ratios have been on sell signals for nearly two weeks. As long as these ratios are trending higher, that is bearish for the broad market.

The breadth indicators have returned to sell signals with a vengeance, and they have plunged to very oversold levels.

Volatility indices have risen sharply. This has generated sell signals for the broad market as well. Moreover, the trend of volatility is rising, and that is also bearish.

At this time, all of the indicators are bearish, and $SPX has broken down. If $SPX closes below the 1978 breakdown level again on Friday, that will confirm an intermediate-term sell signal.

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.