Michael Kahn in Barrons.com notes a breakdown in the S&P 500. More important to Kahn is that investors are too sanguine about the market’s weakness.

If and when the breakdowns in the remaining major stock market indexes occur, the rush for the exits could trample investors. Nobody seems to be preparing for the possibility that a major decline is coming — there’s no wall of worry — and that is also bearish.

It may cost a little to protect a portfolio by diversifying into gold, money market funds and protective put options. But if the market does fall, then a little insurance will go a long way. Call it the price of sleeping at night.