And the answer is....yes, we are. At least according to the McClellan Oscillator.
I have marked what I consider to be the oversold territories on two year charts of both Nasdaq and NYSE McClellan Oscillators. As you can see, one can typically expect a bounce from the levels where we currently stand.
Now, the question arises dear readers, what does being oversold really mean? Obviously, an oversold market can become oversold and similarly, an overbought market can become more overbought. But at these oversold levels, I would be cautious initiating new shorts and look to take partial profits in my existing short positions.
That said, its still a news driven market. So, be careful and good luck out there!