When $SPX broke down through the 2090 support level, that was a very negative sign, especially since stocks failed at the old highs.

There is now strong resistance at 2110-2120 (the February and March peaks), as well as at 2090 (again). As for support, the initial support level will be 2040, the early March lows. Below that, there is support at 1970-1990, which is the area of the December and January lows.

Equity-only put-call ratios continue to remain on sell signals and are now moving higher at a more rapid pace. Both of the breadth oscillators are on sell signals.

Volatility indices jumped higher, but they are still in a rather benign state. $VIX is not even in a "spiking" state. $VIX would have to make new relative highs in order to turn bearish.

In summary, the intermediate-term has taken on a more bearish slant with the breakdown back below 2090. The Fed-induced, artificial rally last week obscured the problems that were potentially building, but they have been exposed now.

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.