The picture says it all. There's no question that the bull has long since died, the only question left is will the market survive?
If so, what will it look like? I always said we'd know the coming collapse was over when Mario Bartiroma was working as a greeter at Wal Mart. Now I'm not sure Wal Mart will be there.

Things are beyond serious, they're down right scary. It appears everyone's selling and no one will ever buy again. The psychological damage being done will be measured in generations. 

The only explanation for what's happening is that the pennant formation we discussed a while back has been the dominant pattern all along. That would explain the sharp break we've seen that cut right through MAJOR support without so much as an "excuse me". If that's the case, the pattern counts down as low as 550 on the S&P.  If you remember, my long range target is 500, however I didn't expect it to be achieved until 2010.

The only bullish option left is for the market to IMMEDIATELY explode back through 788 and head north. I'll believe it when I see it. I can promise you that none of us have ever seen anything like this in the US markets. 

If you got stopped out on that long play don't feel bad. If you're not going to take a position with the market approaching the support it had this morning then you'll never take one.  Be careful out there.