The last time the S&P 500 cash index (SPX) closed this low ($1099), was just after QE2 was announced last year. It has been argued that Quantitative Easing has only benefited the big banks and inflated stock prices, while paving the way for inflation. Scratch off inflated stock prices, they are now back to the level just after QE2 was announced.
In terms of trading, today's lower close is very negative. I had anticipated a potential bear trap was likely and that the markets may rebound after a fake-out to the downside. Today's price action is not reminiscent of a fake-out however and suggests lower prices are in the cards. Too early to confirm anything, so we'll see...
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