In January of this year, I alerted you to the fact that the VIX had issued a sell signal on the overall market.

It was a valid signal, and the market declined about 8% after the signal appeared.

At the time, I suggested that the weight of evidence tipped in favor of the decline to come based upon the VIX sell signal would merely be a correction within the ongoing Primary Wave 2 rally.

In March of last year, I outlined my time and price targets for the Primary Wave 2 rally. For a price target, I listed 1,228.73 as the number for the S&P 500 to achieve.

Timewise, I suggested the rally could last until sometime between February 2010 and May 2010.

In January, the market had neither reached the anticipated time frame nor the range in price of those targets.

Now, however, it is a completely different story.

We are right in the middle of the anticipated time range for a high. From a price perspective, we are very close to my target of 1,228.73, with the S&P 500 having closed today at 1,197.30 after just missing 1,200 intraday.

Remember, there is not a direct correlation between a VIX sell signal and a market decline the following day.

It can take as much as two weeks before we see the market decline develop as a result of the VIX sell signal.

Markets don't always fit nice and neatly into the parameters and expectations that we set for them, but it would certainly be a nice fit if we go up in the next week or two and tag my projected top of 1,228.73, then fall rather vigorously to kick off Primary Wave 3 down.

The second appearance of the VIX sell signal this year is flashing bright red warning signs that a decline is about to happen.

We are right in my time zone for a high. Having rallied 533 points in the last 13 months, and with under 30 more points to go to reach my long-standing target, whatever the market rallies in the next week or two will be sufficient to complete the Primary Wave 2 rally.

From early 2008 onward, I talked for over a year about the decline. From mid March 2009 onward, I talked for over a year about the rally.

With the latest appearance of the VIX sell signal, combined with the attainment (or nearly so) of my long-term projected peak points in time and price, I highly suspect that this is the final hurrah for Primary Wave 2, and for the next year or longer, I will be talking about the absolutely devastating Primary Wave 3 down.

This is a true "Uh-Oh" moment. You had better batten down the hatches. An incredibly devastating bear market is right around the corner and about to awaken from a year long hibernation.