The Qs fell to the first expected level of support at the November 2010 high at 54.04 closing at 54.15, and the SP500 closed at 1256.88 only 0.10 below the March 2008 low of 1256.98. Both indexes closed below the 100dema, and it would be surprising at this point if the 200dema is not seen next. However, a least a small bounce will occur before another leg down.
The McClellan Oscillator has reached oversold levels, but that doesn't mean that the market can't go lower. I am looking for a test of the 200dema before a significant rally begins at this point. It would be nice if we were to see a wash out right now - meaning tomorrow and Friday.