Since March, for over 6 months, every dip of 4 to 5% have been great places to buy for eventual new highs. Those who have sold weakness have been battered. But this time, we've had more complacency with the selloff, everyone already saying this is a buying opportunity. The action on Wednesday was very telling. The bulls came out with guns blazing to defend 1042 on the ES and held that support, causing a lot of intraday volatility. But they used up all their ammo in the process. Volume was absolutely huge. All the bulls went in believing support had held. By Thursday, all their bullets were spent and it looks like the bulls are out of dry powder. Thursday tells me that the market has changed character. The dips are no longer safe to be bought, and now rallies are to be sold. Divergences are everywhere. China topped out in August and has been weak since then. Japan has been especially weak over the past 2 weeks. The Asia growth story seems to be on shaky footing. Without it, the equity markets are in trouble. Also, secondaries are being forced en mass and after a 57% rally, equities are no longer undervalued. I cannot discount a waterfall selloff to 990 where the market held in early September, a pause, and then another assault down to 940 - 950 where strong support rests. Only then will we get enough fear for an investable rally. All this happening in October, when fear will start to percolate as the indexes go lower.