Weekly Stock Market Commentary 8.16.13

The Standard & Poors 500 Index ($SPX)) broke down below the important support level of 1670-1680 today and, in doing so, unleashed a torrent of sell signals.  The picture has changed to intermediate-term negative.

LM 8 16 spx
The equity-only put-call ratios are split.  The weighted ratio made new lows recently, trading at its lowest prices in over a year.  Then it curled up,
in a sell signal.  The standard ratio remains on a buy.  Market breadth has been poor, with both breadth indicators recently having moved to sell signals.

Volatility indices ($VIX and $VXO) had been holding below 14 until $VIX blasted up through that level, staging an upside breakout of sorts.  That is bearish for stocks, as well.
LM 8 16 vix
In summary, the situation is now intermediate-term bearish with most
indicators having moved to sell signals.