The S&P 500 lost 2.69 percent last week, the worst percentage loss for any week since May 2012. Sadly, the market was so overbought that many of the weekly overbought/oversold indicators didn't even move out of overbought territory.

One thing that did happen as a result of last week's selloff was that the CBOE Volatility Index (VIX) jumped sharply higher.

The VIX rose a remarkable 34.2 percent last week to close at its highest level since April.

If you look at the last four weeks, the rise in the VIX is even more astounding, as the index has jumped from 10.32 to 17.03, a 65 percent increase.

The VIX wasn't the only sentiment indicator that showed a shift to more bearish levels either. The 21-day moving average on the CBOE Equity Put/Call ratio jumped to 0.61 from 0.5024 on the first of July.

The bigger surprise from the equity put/call ratio came from the daily readings, as Friday's reading was 1.04. This was the first time since August 2011 that the number of put contracts exceeded the number of call contracts on a single day.

Investors have a natural tendency to trade more calls than puts, but to go almost three years without a single day where put volume exceeded call volume is a testament to how strong the rally has been.