The Grand Daddy of technical analysis, the Dow Theory, indicated that the US markets have slipped into a primary down trend - in other words known as a bear market. The Dow Industrials closed below its May trough of 9810, a day after the Dow Transportation Index closed below its May trough of 4034. I'm not even going to bother with the charts as I'm sure the internet is filled with this news.
In this process, US markets have also completed the H&S pattern we highlighted in our June 15th post http://www.cashthechaos.com/blog/?p=261
In the extreme short-term, US markets could be in for a bounce as the Nasdaq has had 8 consecutive down days and the Dow and S&P 7 down days in 8. While such a bounce is not a guarantee, if it occurs, it would be an opportunity to get short and get out of longs positions if any.
Indian markets which have shown tremendous resilience and outperformed world markets so far, may not do so for long. Expect more intense selling pressure next time Nifty trades below 5259.