The Smell Of Fear

As a regular observer of the markets, I look for patterns in an attempt to discern both near term and long term direction.

I observed in a recent post here, that the markets seem to be hitting a wall of heavy resistance near the 78.6% Fibo level on the S&P 500.

Given current market direction, and the drop in commodity prices that is beginning as the price of crude oil shows below, I must ask, is this the beginning of a liquidation panic, or is it a more seasonal correction?