The US equity markets has not been friendly for the bulls the past 2 1/2 months. If technical analysis has a story to tell, it is saying we are going further downward.
Besides the fact we are at 2010 lows, there are other signs of this downturn continuing. The S&Ps (chart below) has been trading between what was 2010 lows (1036.50) & the 38.2 fib level (1105.61). It can be viewed as consolidation. Technical analysis believes once consolidation is broken at the trend it is going (in this case, downward), and then there is a fierce move at that direction (again, in this case, downward). In addition, volume has been proving the case as well. Up days are on low volume, with higher volume on down days.
A pattern similar to this has occurred once this year. The market consolidated at the top, with big days down on high volume, and smaller days up on light volume, a sign of an exhausted market. It also had a very tough time making new 2010 highs (on light volume). If you exclude the flash crash, it made a big straight move downward to the former 2010 lows at 1036.50, before consolidating, and making the move downward the market has been in the past week.
To further prove the technical analysis point it is perfectly normal to see consolidation with a continuous move in the direction the trend is going, take a look at the chart below, 15-minute chart of SPs. Consolidations are shared in a circle. Each consolidation formed a bear flag (on light volume), in which once the flag is broken downward, it is followed by a move downward on higher volume. This pattern occurred 8 times; 7 times the move lower came. A day trader would sell SPs at the break.