Bearish Formation

My bearishness is increasing by the day as I look at the latest movements in the markets and developments in Europe.

Let's look at a chart of the S&P 500:

I got the three candlestick idea from Steveo over at Hawaii Trading.

Note that the last three significant moves up (green arrows) have touched or nearly touched the 200 day MA.  Also notice that the trend of the highs is lower.

So we have a trend of lower highs.

A declining RSI that is approaching the 50 level.

Declining volumes of stocks traded.

Slow stochastics are declining.

MACD appears to be turning lower.

So, overall, not much bullish action on any of these indicators.

All that is needed is an external event to push the market past the tipping point.

Will some development in Europe (Greece, Italy, Spain, Portugal or Slovenia) trigger a major sell off?

Or will the bulls somehow manage to drag the market higher in the short term?